When a person plans to file for bankruptcy, they may wonder how it will affect their job. Will the employer find out? Can they be fired or denied a job opportunity? Although the employer may find out about a bankruptcy in some cases, in most instances it won’t affect the employee. However, it may have effects on non-government job seekers.
Will the Filer Lose Their Job?
No employer, private or otherwise, can fire a person who files for bankruptcy, nor can they discriminate them in any way. However, if the employer has a valid reason to take away responsibilities or demote a person, bankruptcy offers no protection. If an employee believes they’ve been discriminated against, they should consult a bankruptcy lawyer in Marietta, GA.
When an Employer Finds Out
Employers rarely learn about chapter 7 filings. However, if a creditor sues, gets a judgment, or starts garnishing an employee’s wages, the employer will find out. Bankruptcy stops wage garnishment and it gives an employee the fresh financial start they need.
Some jobs require a security clearance. If someone is in the military or they work for the FBI, CIA or other government agency, they likely have such a clearance. In most cases, a bankruptcy won’t put that clearance in jeopardy. According to experts with the CIA and the military, a person in debt is more likely to be blackmailed, and bankruptcy lowers that risk.
Effects on Job Applications
No local, state or federal government agency can use a person’s bankruptcy as a reason to deny them a job. However, private employers are under no such rules, and a bankrupt person may find it hard to get a job as a bookkeeper, accountant or payroll clerk. Many private companies perform credit checks on applicants, and they’ll find out sooner or later. While an employer must gain authorization to check a client’s credit, they can also refuse to hire someone who doesn’t give consent. By being honest with the employer and hiring a bankruptcy lawyer in Marietta, GA, a job seeker can eliminate many of the negative effects of a bankruptcy filing. Visit Chriscarouthers.com for more information or to set up a consultation.
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