Bankruptcy and Employment...Who Will Know and Can I Be Fired?

Bankruptcy and Employment...Who Will Know and Can I Be Fired?

It is important to know that you cannot be fired because you filed for bankruptcy...

A common worry when someone files for bankruptcy is who will find out about it. A bankruptcy filing is a matter of public record, but you would have to search through court records to find a person’s name and most people don’t bother doing that.  Usually the only people that really know are the ones you tell personally and your creditors.  There are exceptions to that rule, especially when it comes to your employer.  Your employer doesn’t have to know but under certain circumstances, might be privy to that information.

There are a few instances when your employer might know that you filed for bankruptcy. 

          If you’re filing bankruptcy to stop a wage garnishment

          When you owe the company money and the employer needs to be listed as a creditor

          Filing Chapter 13 when there is a payment plan and it comes out of your paycheck

It is important to know that you cannot be fired because you filed for bankruptcy.  This would be against the law.  You are protected under Title 11 of the United States Bankruptcy Code Section 525. 

To learn more about your rights as an employee filing for bankruptcy, M.C. Law Group is here to help.