Bankruptcy Will I Lose My Job?

Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.

Bankruptcy Will I Lose My Job?

The government can’t discriminate against you for having filed for bankruptcy. If you work for a local, state, or government agency, you cannot be fired. Nor can your public employer take other punitive action against you, such as demote you, reduce your salary, or take away responsibilities. Private employers can’t fie you or punish you solely because you filed for bankruptcy.

In fact, it’s rare that an employer ever finds out about a Chapter 7 bankruptcy filing. About the only time this might happen is if a creditor has sued you, obtained a judgment against you, and started garnishing your wages. The bankruptcy will stop the wage garnishment, and your employer will be notified about it. In such a situation, your employer (or at least the payroll department) already knew you were having financial problems and will probably welcome the bankruptcy as a way for you to take affirmative steps to put your problems behind you.

On the other hand, if you file for Chapter 13 bankruptcy, your employer is likely to learn of your bankruptcy case. This is because, if you have a regular job with regular income, the bankruptcy judge may order your Chapter 13 payments to be automatically deducted from your wages and sent to the bankruptcy court. This is called an “income deduction order”.

You may not like the idea of the income deduction order, but the bankruptcy court is likely to deny your Chapter 13 plan if you refuse to comply with it. And realize that the order will probably make it easier for you to complete your plan. The success rate of Chapter 13 cases is higher for debtors with income deduction orders than for debtors who pay the trustee themselves.

Many jobs require you to get a security clearance. If you are a member of the armed forces or an employee of the CIA, FBI, another government agency, or private company that contracts with the government, you may have a security clearance. Do you risk losing your security clearance of you file for bankruptcy? Probably not, in fact, the opposite may be true. Accordingly to credit counselors for the military and the CIA, a person with financial problems, particularly someone with a lot of debts, is a high risk for being blackmailed. By filing for bankruptcy and getting rid of the debts, you substantially lower that risk. Bankruptcy usually works more in your favor than to your detriment.

Bankruptcy Is it the right solution to your debt problems? Attorney Robin Leonard

Bankruptcy Will I Lose My Job?

Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.