Will I Lose My Job If I file For Bankruptcy?

Filing for Chapter 7 or Chapter 13 Bankruptcy in Aurora and Denver: Will I Lose My Job?

 

Job Loss Bankrupt

Because of the embarrassment and shame that tends to accompany serious financial issues, people are often worried about others finding out that they are filing for bankruptcy in Denver, Aurora, or Centennial. Some are especially worried about their employer finding out, as they worry it will reflect poorly on them. The he way Colorado employment law is set up, you can be fired for little or no reason. Let’s look at how bankruptcy works and how it can affect your employment.

Does the Law Offer Any Protection for Someone with a Job Filing Bankruptcy?

There is a provision of the law that protects a person from being discriminated against by their employer for filing a bankruptcy. Bankruptcy is an avenue to help people get a fresh start. It would be counterproductive for someone to lose their job while trying to get their finances back on track.

Will My Employer Find Out I Have Filed for Bankruptcy in Parker?

While there are some people or entities that are notified about your bankruptcy filing (i.e. creditors), your employer is not one of them. The fact is, you can go through this process very privately. Yes, there are public records related to your bankruptcy filings, but someone would have to go through the process of specifically requesting records. The only reason someone would likely consider doing that is if they knew you had filed.

Examples of When an Employer is Made Aware of a Bankruptcy Filing

There are very few exceptions where an employer would be notified or made aware of an employee filing for bankruptcy. With a Chapter 7 bankruptcy, the only way an employer would be notified is if your employer is one of your creditors. Otherwise, no one involved in the bankruptcy will disclose the bankruptcy filing to your employer. For a Chapter 13 bankruptcy, your employer will only know about the filing is if you chose to have your wage garnished and applied to your monthly payment plan. Many choose that route because it is easier to not have to worry about making the payments. It is your choice and you can choose to not have the wages garnished – keeping your employer out of it.

If you have more questions take a look at our FAQ page.

To learn more about how I can help with your specific case please call me, Barry Arrington,  at 720-605-4347 or request a free consultation.

 

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