We live in an age where no information is private anymore. So, when you are filing for bankruptcy, it will be a part of public records as your credit reports will show the bankruptcy for up to 10 years. Currently, it has become a norm for employers around the country to conduct background checks, criminal history, and credit reports checking. So, it is natural to think if your bankruptcy filing can result in losing your job. Or you might worry about the impact of bankruptcy on your future employment. Our Pittsburgh bankruptcy lawyer clears your doubt.Can Your Employer Fire You If You File for Bankruptcy?
To answer your question, if your employer can terminate you from your current job or not, is a no. According to the terms of 11 U.S. Code § 525(b), “No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor…”
Your employer can fire you for some other reason during bankruptcy just like any other time. But bankruptcy won’t cause any legal situation that will result in your employer firing and you losing your job.
When you are filing for Chapter 13 bankruptcy, the associated reorganization plan – that includes garnishment towards your debt- will become disclosed to your employer or the payroll department of the organization you work with. However, you are protected by federal law which will prevent any employer from taking any action on the basis of bankruptcy on you.
In case of any confusion or harassment, consult an experienced Pittsburgh bankruptcy lawyer who will protect your rights.Applying for a New Job After Filing for Bankruptcy
To protect the employees or the job seekers from any kind of harassment for bankruptcy and other reason, the anti-discrimination laws have been issued and practiced for years in the United States. However, there is one loophole that often employers use. Bankruptcy has a direct and negative effect on credit score. Often employers reject job applications solely on this ground.
The Equal Employment Opportunity Commission frowns upon the unnecessary credit checks as it is often associated with racial profiling. But that doesn’t stop companies from running background checks. Hence, your credit score will be disclosed to your employer anyway. Hence, get prepared to face some really difficult and unwanted questions about your finances.
When your potential employer asks you about bankruptcy, don’t lie as you might get penalized. Be honest and talk about the positive outcomes of your case. Assure them that you are working hard to stabilize your credit and finances while cutting on unnecessary expenditures.
However, there is one good thing about this. The employer must get signed consent from you to get information about your credit situation. So, it won’t be a surprise for you.
If you are looking for more answers regarding bankruptcy, then come to us at Pittsburgh Bankruptcy Law Group and get a consultation from our Pittsburgh bankruptcy lawyer.