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Is Your Job At Risk From Filing Bankruptcy?

Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “What is Chapter 7 Bankruptcy?”

 

A common question for those facing serious financial issues is whether their decision to file bankruptcy could result in the loss of a job. The good news is that you have no reason to fear being fired simply for filing for bankruptcy protection, regardless of whether the application is for a Chapter 7 or Chapter 13.

 

Hand Offered Charlotte Bankruptcy Lawyer North Carolina Chapter 7 AttorneyThe reason is that no employer, whether private or public, is legally allowed to fire an employee because of his or her decision to file for bankruptcy. The same rules protect employees from having other discriminatory action taken against them by employers. This means that your boss can’t arbitrarily decide to lower your salary, demote you or reduce job responsibilities because of a bankruptcy.

 

Though you cannot be directly fired for filing for bankruptcy, it is important to understand that your bankruptcy does not prevent you from being fired for other reasons. That means if your boss has a valid reason to take action against you, such as tardiness or poor performance, there is nothing stopping him or her from letting you go for that reason alone.

 

You might also be wondering how your boss would ever find out about the bankruptcy in the first place. If you filed for a Chapter 7 bankruptcy, the chances of your boss finding out are relatively slim. The reason is that unless a creditor filed to garnish your wages, there would be no reason for your employer to be involved in the process. In a Chapter 13 case, it is possible your employer would find out given that the bankruptcy trustee may ask that a certain amount of money be paid directly to the court to ensure timely payments under your repayment plan.

 

What about those who are looking for a new job? The good news is that for anyone applying to work in a government position the bankruptcy cannot be factored into the decision about whether or not to hire you. However, this rule does not apply to private employers.

 

Private employers are well within their rights to run a credit check on prospective employees, with your permission of course. While they may find out about your bankruptcy, that does not mean that they are sure to care. Be honest and upfront if asked and don’t shy away from previous financial hardships. This doesn’t need to impact your ability to be an asset to your employer and they should understand that.

 

If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828 or find more resources here. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.

 

About The Author: 

Bryan 1  Bryan Stone is a Partner with Arnold & Smith, PLLC where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord tenant issues.  Originally from Macon Georgia, Mr. Stone attended the University of Georgia for a BBA in Banking and Finance and went on to Wake Forest to earn his law degree.  After law school Mr. Stone relocated to Charlotte where he has become quite involved in many local organizations.  He is currently the Chair of “Bravo!” the young professionals organization of Opera Carolina, he also founded the UGA Alumni Association of Charlotte.  In his spare time he enjoys perfecting his BBQ skills for the annual “Q-City BBQ Championships” and playing softball with the Mecklenburg County Bar Softball League.

 

Source:

“Debunking Four Myths of Bankruptcy,” by Jon Clarke, published at InvestorGuide.com.

 

 

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