Your Employer In Bankruptcy

: Chris Lee Law Firm

  Filed under: Wage garnishment

It is common knowledge that the bankruptcy process is a matter of public record. That is, your case becomes public record after filing. However, that doesn’t mean that people will be notified of your bankruptcy case. In most cases, friends, family or your employer don’t have to find out unless you tell them.

Protecting Your Job

Many people hold myths about bankruptcy that deter them from taking advantage of the process, getting fired for filing is one. If your employer were to find out about your filing it would likely be because a creditor served wage garnishment notification or you owed your company money, making them one of your creditors.

In either case you can rest assured that your job cannot be terminated solely based on your bankruptcy filing. Section 525 of the Bankruptcy Code states that “no governmental unit or private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title.”

The cases in which a bankruptcy could become an issue is if your employment is working with a financial institution, like a bank or brokerage firm. However, you are still protected under Section 525, the trouble here is generally geared more towards discrimination in the hiring of you for a job in this field.


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