Can an Employer in Atlanta, Georgia Refuse to Hire me due to my Bankruptcy Filing?

When considering filing for bankruptcy, it’s natural to wonder how it could potentially affect your employment status. For the most part, your current employment status will not be affected by your filing for bankruptcy. However, there are a number of important details you need to know about how filing Chapter 7 or Chapter 13 bankruptcy and its relation to your employment in the present and future.

Will I Lose My Job Due to Bankruptcy?

Your employer does not have the authority to fire you solely because you filed for bankruptcy. They also are not able to use their knowledge of you filing to change the terms of your employment. This means that reducing your salary, demoting you, or discriminating against you in any way is illegal.

How Could My Employer Find Out About My Bankruptcy Filing?

Although it’s uncommon, your employer may still find out about a Chapter 7 bankruptcy filing. This may happen if:

There’s a stop of wage garnishment

Your employer will find out if you file for bankruptcy and are subject to wage garnishment; if you are to stop your garnishment, your employer must receive notice of your filing.

You’re making Chapter 13 payments

In some jurisdictions, filing for Chapter 13 bankruptcy will alert your employer; a bankruptcy judge may order your Chapter 13 payments to be deducted from your wages and sent to the court. Your employer would act as a collection agency, ensuring that you’re honoring your payment plan.

You owe your employer money

When you’re filing bankruptcy, you’re required to list all of your debts. If this includes a debt owed to your employer, you must include the outstanding balance on your form. Your employer will then be notified that you are filing as an effort to pay them back.

Can an Employer Refuse to Hire Me?

When it comes to finding new employment, filing for bankruptcy can complicate things. Any federal, state, or local government position you apply for cannot consider your bankruptcy when deciding whether or not to hire you. However, a private employer doesn’t have to follow the same rules, and they may choose not to hire you due to your filing.

Private employers are known to conduct a credit check on their applicants, and the credit report will make them aware of your bankruptcy filing. For employees seeking careers in finance, accounting, payroll, or other money-related fields, a bankruptcy filing could prove to be a major deterrent for employers.

Discuss Filing Bankruptcy with a Trusted Bankruptcy Lawyer

If you would like to discuss whether bankruptcy is appropriate for your financial situation and how it could affect your employment status, contact the Law Offices of Charles Clapp at 404.585.0040 to schedule a free consultation.

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