If you decide to file for bankruptcy, your employer may or may not learn about it, depending on the kind of bankruptcy you choose. While bankruptcies are public records, only a few people want to view the bankruptcy filing. And when you file for Chapter 7 bankruptcy, your boss may never find out.
However, if you choose Chapter 13 bankruptcy, your employer will become involved in the final arrangement. In this type of bankruptcy, a bankruptcy judge might order the automatic deduction of your plan payments from your paychecks. In this case, your boss will be aware of your bankruptcy filing. Thankfully, you won’t lose your current job despite your boss’ knowledge of your filing, no matter the type of bankruptcy you choose. If there are things you are not sure about your filing, you consult with your Hagerstown, MD bankruptcy attorney to get the answers you need.
Your Employer Cannot Fire You for Filing Bankruptcy
No matter what sector you work in, your boss cannot terminate your employment based only on your bankruptcy filing. But if you are currently facing employment-related issues such as poor performance, attendance problems, or insubordination, your boss may be able to fire you and your bankruptcy filing will not give you additional protection.
You Cannot Be Treated Differently Following Bankruptcy
Your bankruptcy filing should not affect your opportunities to get a raise or promotion. Also, it has no say on your acquisition of a professional license or security clearance. It is not legal for your boss to change your employment conditions as a result of your bankruptcy filing. They cannot demote you or use your filing as grounds for cutting your salary or reducing your job duties.
How Bankruptcy Can Impact your Job Search
If you are looking for a position in the government sector, filing for bankruptcy should not present an issue. The hiring process does not consider this factor. Also, employers in the private sector follow the same rules. However, your bankruptcy filing could impact your ability to land a job in the financial sector. If you have concerns about bankruptcy filing, your attorney will give expert advice and answers. An experienced bankruptcy lawyer can help build a better financial future. They usually provide a free consultation during which they will evaluate your situation, so they can guide you on the right path to bankruptcy. Your attorney will determine the right kind of bankruptcy that fits your financial situation.