Filing for bankruptcy is a daunting process that will have positive and negative effects on your life. One of the most common concerns debtors have about bankruptcy is its effect on employment. Our Las Vegas bankruptcy attorneys explain how bankruptcy may affect your job.
Will I Lose My Job If I File for Bankruptcy?
Although your employer can learn that you are in bankruptcy proceedings, employers cannot fire a worker for filing bankruptcy. An employer also can’t change the terms in your employment contract after discovering that you are filing for bankruptcy. An employer also can’t reduce your salary, demote you, or take away responsibilities.
How Would My Employer Find Out About My Bankruptcy?
There are several ways that employers can discover that a worker is filing for bankruptcy – especially if you filed for Chapter 13 bankruptcy. Employers rarely find out when an employee filed for Chapter 7 bankruptcy, but if you file for Chapter 13 bankruptcy, your employer may find out. For example, if you were facing wage garnishments, your employer would discover that you are going through debt issues and that you stopped it by filing for bankruptcy.
If you file for Chapter 13 bankruptcy, the court might ask that your payments be deducted from your wages. In this case, your employer would discover that you filed for bankruptcy. If you owe money to your employer and you seek relief through bankruptcy, your employer would also find out this way.
Will Bankruptcy Affect Employment Opportunities?
All federal and state government agencies can consider your bankruptcy when deciding whether to hire you. However, private employers are not constrained by this rule. Private employers do conduct a credit check on job applicants and often review credit reports. While private employers have a right to check your credit, it doesn’t mean that it will negatively affect your chances of getting hired.
Have questions about your bankruptcy process? Contact our Las Vegas bankruptcy attorneys today at (702) 323-5750!