Bankruptcy – Can it Affect my Job or Getting Hired?

When you are going through bankruptcy, the last thing you want to do is add to the stress of wondering how it will impact your job. In most situations, it is safe to say that your bankruptcy will not affect your current job in any real way. That said, it could be an issue later when applying for a job that is not with the government.

Will You Lose Your Job due to Bankruptcy?

There is no private or government employer that can fire you if you are in bankruptcy. An employer also is unable to discriminate against you by demoting you or reducing your salary. If there are other reasons for an employer to do such things, it is important to know that filing for bankruptcy won’t shield you from such consequences.

How Do Employers Learn About Bankruptcy Filings?

Employers often do not find out about Chapter 7 bankruptcy. However, if you have been sued by a creditor, your wages being garnished, bankruptcy will stop any wage garnishing, so your employer will learn of your bankruptcy.

For Chapter 13 bankruptcy, your employer is more likely to know about the case. If you have a job with regular income, your Chapter 13 payments will automatically be withheld from your wages. Your employer will receive an order from the Bankruptcy Judge to withhold these payments.

Effect of Bankruptcy on Job Applicants

There is no local, state or federal government agency that can use your bankruptcy against you when deciding if they want to hire you; however, private employers may do so, especially when it comes to financial-based jobs like bookkeeping. Private employers may conduct a background check, find out about the bankruptcy and decide legally that they do not want to hire you.

Overall, your employment is generally not affected by your bankruptcy filing. Future employment opportunities might be impacted, which makes it important to disclose your filing before the background check is run. You are doing what you had to do, and many places will understand.

Willoughby, Ohio Attorney Robert A. Boyd can help clients weigh all of their options when it comes to bankruptcy. We can explain how filing bankruptcy will affect all of your finances, including your current and future employers, and we can provide you with advice regarding how to proceed that is in your best interest. Call us at 440-230-3230 to schedule a consultation.

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