If you are planning to file for personal bankruptcy, you may be concerned that it will affect your employment. You may be worried about negative consequences if your current employer finds out about your Chapter 7 or Chapter 13 bankruptcy or that you will be denied employment from a potential employer.
In most cases, you can rest assured that bankruptcy will not affect your current employment. The law prohibits your employer – government and private – from discriminating against you because you are a debtor filing bankruptcy. This includes taking actions such as reducing your salary, demotions, reduction in responsibilities or even termination of your employment.
If you are seeking employment, the law provides express prohibitions against federal, state or local government agencies solely considering your bankruptcy when deciding whether or not to hire you. This extends to the private sector also, however, the bad credit that typically precedes bankruptcy can be considered in the hiring process.
Keep in mind, though, that a poor credit report is usually not the primary factor in deciding whether to hire you. If it is a good fit for you and your potential employer otherwise, it may not be an obstacle given the difficult financial times many people are facing.
Deciding whether to file for bankruptcy protection can be difficult, but for many, it is a positive financial step. The process is made far easier when you have the information and support you need to decide if bankruptcy protection is the right strategy for you and your family. Contact the Law Offices of Charles E. Covey for a free consultation to gain a better understanding of what a chapter 7 or chapter 13 bankruptcy can offer you.