Unfortunately, some people view bankruptcy as a negative event in their lives. While filing bankruptcy is not something that anyone wants to do, filing bankruptcy may be an affordable solution to debt problems. Many people who file for bankruptcy relief do so because of a financial crisis that is out of their control such as the loss of a job, a divorce, the loss of a spouse or an unexpected medical emergency or accident.
Even though a person may know that filing bankruptcy is what is in his best interest, he worries about what his friends, family and co-workers may think if they find out about the bankruptcy filing and he may fear what will happen if his employer finds out about the bankruptcy filing.
Can My Employer Fire Me if I File Bankruptcy?
No, your employer cannot fire you because you file bankruptcy. It is illegal to fire a person for filing a bankruptcy case or not paying a discharged debt. Under 11 U.S.C. §525 of the Bankruptcy Code, a public or private employer is prohibited from discriminating against an employee solely because he or she filed for bankruptcy relief.
Do I Have to Tell My Employer I Filed Bankruptcy?
No, in most cases you never need to tell your employer you filed bankruptcy and in most cases, your employer will never find out that you filed bankruptcy. The main exception to this rule is for a debtor who files a Chapter 13 bankruptcy. In a Chapter 13 bankruptcy case, the debtor must propose a bankruptcy plan to the court detailing how the debtor proposes to reorganize his or her debts. The debtor pays the bankruptcy trustee a monthly payment according to his or her bankruptcy plan.
In some cases, this payment will automatically be deducted from the debtor’s paycheck. In these cases, the debtor’s employer will obviously know about the debtor’s bankruptcy filing because the employer will receive an order from the court directing the employer to withhold the bankruptcy payment from the payroll and forward it to the bankruptcy trustee. Having the payment payroll deducted is typically better for the debtor because debtors who have payroll deduction are more successful in completing their bankruptcy plan.
For small companies, your employer may know about your filing; however, in large companies, the people in the payroll department are the only people who know about the bankruptcy because they must schedule the deductions and forward the payments. Most companies protect payroll information very carefully so the chance of anyone else in the company finding out about your bankruptcy is very low.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey.
Contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
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