We often get asked whether a bankruptcy will affect the client’s job. The short answer is “no”. In fact, pursuant to 11 U.S.C. § 525(b), your employer cannot discriminate or terminate your employment based on you filing a bankruptcy petition.
This doesn’t mean that your employer will not find out about the bankruptcy, but generally it is unlikely unless you tell them. All bankruptcies are public and the information can generally be accessed through the bankruptcy court online. Your employer, however, would not be notified of the bankruptcy unless they were a creditor or they were garnishing your wages on behalf of another creditor.
If you think you have been discriminated based on a bankruptcy filing or if you are contemplating filing bankruptcy and are concerned about the consequences with your employer (or otherwise), please give us a call at (765) 640-1330.
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