Chapter 13 bankruptcy requires you to repay your debts on a payment plan. To do that, you'll need regular income. That makes it one of the worst times to lose a job, so you may be understandably concerned about your boss firing you over your financial situation. The good news is that it's unlikely to happen, but it's important to know how the filing might impact your current and future employment.

If you're considering a bankruptcy filing, I can help you understand your risks. Call me at 678-888-1778 or complete my confidential contact form and provide brief details about your situation.

Employers and Chapter 13

When you file for bankruptcy, it can feel like the world knows. In truth, though, most people will never be aware of the filing, and that includes those who issue your paycheck. In fact, you may go through the entire repayment process without your employer ever realizing you have a bankruptcy on the books.

But there are some instances where an employer may find out you filed. If your wages were being garnished or you owed money to your employer, the bankruptcy filing may make its way to your boss's desk. Some employers routinely run credit checks on employees, which could lead to them finding out, but this tends to be specific to financial jobs.

Employment Protections for Employees

The short answer to whether an employee can be fired for filing bankruptcy is “no.” Section 525 of the Bankruptcy Code prohibits employers from terminating or demoting employees due to a bankruptcy filing.

As with many employment laws, violations do happen. Your employer may claim to be terminating you for another reason. If you're fired as a result of any bankruptcy filing, an employment attorney can help you decide what to do next.

Bankruptcy and Future Employment

While your employer can't legally fire you for a bankruptcy filing, those protections don't extend to new employers. When you apply for a job, bankruptcy can impact you in the following ways:

· Credit checks—While it's rare, some employers do conduct credit checks on final-round candidates. Not only will your bankruptcy come into play, but your overall credit score could be taken into consideration.

· Background checks—Some employers run background checks. In that case, they're typically looking for criminal activity, not bankruptcies. However, a recent bankruptcy may show up.

· Security clearance—If you apply for a job that requires security clearance, your bankruptcy filing may be unearthed.

If you know an employer will run a background check, it might help to be as up-front as possible during the interview. You can then explain the situation and offset any assumptions the employer will make.

Legal Help with Bankruptcy Filings

Bankruptcy shouldn't affect your current employment, but it's natural to have concerns. If you're considering Chapter 13 bankruptcy, contact me at 678-888-1778 or fill out this confidential online form, and I'll be in touch.