Can bankruptcy affect employment? Or will bankruptcy affect my job? So, is it something you are thinking of? If so, then it is the time to dive into this informative piece that will help you in grasping every single factor or data on Does My Employer Have to Know If I File Bankruptcy.
So, what are you waiting for? Let’s delve inside the following segments one after another.
Here we go!!
Table of Contents
What Happens When You File Bankruptcy?
What if you file bankruptcy? Well, if you are striving financially or have financial problems, bankruptcy provides you the possibility to pay off the fraction of the debts over the time or else some of them will be obviated completely.
Either way, announcing the bankruptcy allows what is called an automatic stay that is a block on your debt to prevent other creditors from seeking to accumulate.
They cannot deduct the money from your account, go after any of the other assets or impound the wages.
If You File for Bankruptcy, Will Your Employer Know About It?
One of the most general fears that triggers when someone evaluates filing bankruptcy is that everyone will acknowledge it. In reality, very few people other than the creditors or the one you discuss personally will know about your filing for the bankruptcy case.
Though the filing of the bankruptcy is an issue of public record, hence, it is not easier to discover such records because it is to encounter various other matters like driving violations, real estate buying or arrests.
As it is mentioned in the public record, the filing of the bankruptcy could be found by anybody. Hence, the employer can find who actually filed the case. What if, the employer is not interested in surfing the public record? In that case, you can be on the safer side.
As per the survey of 2020, only 6% of the employers view the credit reports of the candidates carrying the information of bankruptcy.
At this time, let’s discuss two major types of bankruptcy, i.e.:
- Will my employer know if I file chapter 7?
- Will my employer know if I file chapter 13?
Chapter 7 bankruptcy case is the one that helps you in walking away from paying the debts and leaving the creditors with no penny in hand.
On the other hand, chapter 13 carries the plan of 3-5 years when you can complete the repayment of the debt.
So, this was the brief of chapters 7 and 13. If you want to know more in detail, then, let’s proceed further.
So, what are you waiting for? Without wasting any further moment, let’s delve inside!!
Will My Employer Know If I File Chapter 7
At this stage, let’s start with the Chapter 7 of bankruptcy. Well, the chapter 7 filers acquire the discharge within 3-4 months after the bankruptcy petition is filed with the US bankruptcy court.
Therefore, the creditors are not permitted to reach you once your case is registered. Moreover, the bankruptcy law expresses that you have to sell off the undisputed property to pay out the unbolted creditors.
That is because of the reason that the bankruptcy releases a limit for what kind of the property could be utilized for paying the creditors. There are no boundaries to how much the debt could have in chapter 7. Likewise, you cannot create too much money.
Will My Employer Know If I File Chapter 13
After chapter 7, it is the time to discuss chapter 13. Well, the chapter 13 bankruptcy includes the repayment plan. In spite of the fact that the creditors could disapprove how much they get under the chapter 13 plan, once the bankruptcy court authorizes it, they are enchained by it. Hence, the monthly payment is based on what could be expended to pay by you.
Different from the chapter 7, you can cut down the interest rate and in some instances even the balance collected, on the car loan by registering the Chapter 13 bankruptcy.
Since the creditors acquire some money in Chapter 13, the filers are not postulated to give up any non-exempt holding.
The debt that is not returned is gotten rid of by the bankruptcy discharge of Chapter 13 later after the creation of a 3-5 years repayment plan.
Can You Lose Your Job for Filing Bankruptcy?
The major concern that might be revolving around your head could be if you will lose the job after filing bankruptcy, or how does bankruptcy affect your job search? Isn’t it? If so, then it is important to note that no government or private employers or the other employers from the private sector can fire a person on the reason of him filing a bankruptcy.
In that scenario, an employer cannot:
- Lessen down the salary or wage garnishment.
- Depart you from responsibilities.
- Demote you.
Final Thoughts
In case you are filing for bankruptcy or facing bankruptcy, you can contact the best bankruptcy attorney that could help you better in the case.
Moreover, this informative piece carries and discusses every single aspect that will help you to know more about: Does My Employer Have to Know If I File Bankruptcy?