How Will a Bankruptcy Filing Affect Your Ability to Make a Living?

The Impact on Your Current Employment and Future Job Opportunities

Bankruptcy Filing AffectEven though the American bankruptcy laws were intended to offer a positive form of relief for persons experiencing financial challenges, there’s often still a stigma attached to bankruptcy. Many people worry their employer will learn of the bankruptcy proceeding and let them go, or that they’ll have to report the bankruptcy when applying for a new job. Can your employer take any action in response to your decision to file for bankruptcy? Can a prospective employer disqualify you because of a prior filing?

Current Employment

Under the bankruptcy laws, an employer is prohibited from taking any type of retaliatory action in response to an employee’s personal bankruptcy filing. You cannot be fired, demoted, or subjected to any loss of benefits because of a bankruptcy filing. This rule is without exception. It applies even if you work in a fiduciary position—such as a trust officer or financial advisor—or a job that requires security clearance. In terms of security, it may be a greater risk if you opt not to file for bankruptcy protection as you might be more susceptible to blackmail.

It’s important to understand, though, that these rules apply only to actions taken after you have filed for bankruptcy. If you disclose to an employer that you are merely considering filing for bankruptcy, the protections do not apply.

Prospective Employment

As a general rule, private employers may choose not to hire individuals who have filed for bankruptcy. Most state, local, and federal agencies, however, cannot use that as a basis for denying employment.

Contact Heath, TX Bankruptcy Attorney Carrie Weir

I provide a free initial consultation to anyone with questions or concerns regarding a bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.

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Call Rockwall bankruptcy lawyer Carrie Weir at 972-772-3083 or fill out the contact from below for a free, confidential consultation to discuss your options.

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