If you are thinking about filing a Staten Island bankruptcy or a New Jersey bankruptcy, you may be wondering- how bankruptcy will affect my job? Many individuals in New York and New Jersey file bankruptcy everyday to help get out of debt. In most cases bankruptcy will not affect your job. Many people who come to us are often concerned that their employer will find out about their bankruptcy. In most cases an employer will not be aware that you filed bankruptcy.
Can I lose My Job if I File Bankuptcy?
Under the Bankruptcy code, it is illegal for an employer to fire you because you filed bankruptcy. It does not matter who you work for or what type of job you have. If you work for the government or ar ein private practice, employers are not allowed to fire you because you file bankruptcy. Under the bankruptcy code, employers can get introuble if they discriminate against any employee because they filed bankruptcy. This means an employers can’t hold the fact that you file bankruptcy against you. Filing bankruptcy does not give an employer a valid reason to fire you, demote you or cur your pay.
Will My Job Find Out if I File Bankruptcy?
More often than not, employers will not find out about your bankruptcy. However, an employer can find out about your bankruptcy if you were sued and a jdugment was entered against you. A creditor who gets a judgment can garnish your wages. When a wage garnishment goes into effect, your employer will be notified. Bankruptcy stops a wage garnishment immediately. However, you may need to show whoever does your payroll proof of your bankruptcy filing so that the wage garnishment stops. The only reason your employer may find out about the bankruptcy is so that the wage garnishment is stopped. Further, your employer would not be allowed to share this information with any other employee.
In a Chapter 13 bankruptcy, it may be more likely that your employer will find out about the bankruptcy. In a Chapter 13 bankruptcy, you will have to make payments to a trustee in a 3-4 year plan. Some Trustees require that these payments are deducted directly from a debtor’s paycheck.
Will Bankruptcy Affect Me When I Apply For A New Job?
Many individuals who are contemplating bankruptcy are worried about how bankruptcy will impact their future. Many people are worried that when they go to apply for a new job the bankruptcy will cause a major red flag. This is not true. Federal, State or local government agencies may not take your bankruptcy into consideration. Our office has filed bankruptcies for people from all walks of life, inclusing, police officers, accountants, bank tellers, firefighters, teachers, MTA workers, and more. There are no rules against private employers considering someone who filed bankruptcy. Further, if you are in a financial field, your employer may take into consideration that you filed bankruptcy.
Private employers can find out about your bankruptcy filing by doing a simple credit check. It is important that you are open and honest about your bankruptcy from the start. Showing your potential employer a good reason as to why you had to file bankruptcy and how you bounced back can help advance your employment.
To learn more about debt and how filing bankruptcy will affect your job, contact our bankruptcy office today. Karra L. Kingston Esq. has helped many individuals in New York and New Jersey start over financially. Our New York bankruptcy lawyers practice in the five boroughs. Call for a free consultation!