Most of the time, people are scared of bankruptcy as they believe that filing for bankruptcy will mean that they will lose all their assets and belongings. They are often also scared about the social repercussions and problems at the workplace too. What many people fail to understand is that bankruptcy is there to offer some relief from the burden of debts and get a fresh start financially. Also, if you are worried about the consequences of it at your workplace, then rest assured. Your employers are not entitled to be notified about it. For more details, connect with our Pittsburgh bankruptcy lawyer.Can My Employer Know About It?
In general cases, your employer is not entitled to know about your filing bankruptcy. The process will not notify them. However, your bankruptcy filing will be a part of the public record. Hence, if your employer wants to look into it, they can get the information.
However, in some instances, your employer will be notified about the bankruptcy filing. Take a look at the following circumstances to know more.Chapter 7 Bankruptcy
Being the most common type of bankruptcy, Chapter 7 bankruptcy filing allows you to get rid of your unsecured debt and take care of the secured debt with the assets that are non-exempt. For this, there is no need to notify your employer. For the process, you and your Pittsburgh bankruptcy lawyer will be needed to take care of it.
However, your creditor might file for wage garnishment that will allow them to get paid from your wages. This way your employer will know about the process and will have to comply with it. However, when you are filing for bankruptcy, your Pittsburgh bankruptcy lawyer will ask the court to stop the garnishment. Your employer even though not notified directly, will eventually know about the bankruptcy as the wage garnishment will stop.Chapter 13 Bankruptcy
When you will be filing for Chapter 13 bankruptcy, you will get three to five years of the repayment plan. A part of it can be adjusted with your paycheck. Your employer might get a notice from the court to make necessary adjustments with your paycheck so that the amount gets deducted automatically from what you earn.How Can Bankruptcy Affect Your Job in Pennsylvania
The federal law protects you as an employee so that your employer cannot take any action in regards to you filing for bankruptcy. They cannot fire you, demote you, reduce your wages or do anything adverse against you because of the bankruptcy. However, during the bankruptcy process, they can take action against you for different reasons like lack of productivity, absenteeism, failing to meet deadlines and so on.A Brief Description of Bankruptcy Process
When you are filing for Chapter 7 bankruptcy, it will help you get rid of all your unsecured debts. You will be able to let go of the medical bills, credit card bills and so on. Your non-exempt assets will be liquidated by the trustee appointed by the court and your debtors will get paid. You can save your house and car with federal exemptions. You have to qualify the means test to file Chapter 7 bankruptcy.
If you want to save your assets, then filing for Chapter 13 bankruptcy is the best option. You will get a repayment plan for the next 3-5 years which will help you deal with the debts.
For further information, connect with our Pittsburgh bankruptcy lawyer at Pittsburgh Bankruptcy Law Group.