Undergoing bankruptcy proceedings is likely something that you would like to do privately. With this, you may be wondering if your employer will find out about this, and how this may affect your employment. Continue reading to learn if a bankruptcy filing will hurt your current and future employment opportunities and how an experienced Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help protect you.

Will bankruptcy hurt my current employment?

Your bankruptcy filing will indeed be accessible on public records. However, looking up a bankruptcy case on the court’s Pacer system may be complicated. And so, your employer is likely not going to make the effort to track this information down. In addition, bankruptcy trustees will likely not contact your employer, and the Kentucky bankruptcy court will likely not send a notice regarding your case. With all these reasons considered, your employer will likely not find out about your bankruptcy filing unless they hear it through word of mouth or from you directly.

However, there are certain situations in which your employer may discover that you are undergoing bankruptcy proceedings. Such situations include the following:

  • You have a wage garnishment to make your bankruptcy payments.
  • You file for a Chapter 13 bankruptcy that requires payments from your wages.
  • You specify that you owe your employer money in the list of your bankruptcy debts.

Regardless, your employer cannot treat you differently on the sole basis of your bankruptcy filing. That is, they cannot partake in the following activities:

  • They cannot fire you solely due to your bankruptcy filing.
  • They cannot reduce your wages solely due to your bankruptcy filing.
  • They cannot demote you solely due to your bankruptcy filing.
  • They cannot change your job responsibilities solely due to your bankruptcy filing.

Will a bankruptcy filing hurt my future employment opportunities?

Say, for instance, that you want a fresh start after your bankruptcy proceedings are behind you and you are seeking new employment opportunities. If you are applying for a federal, state, or local government agency, your past bankruptcy filing will not be brought up. However, if you are applying for a job in a private industry, an employer may consider this factor when deciding whether to hire you. This is especially the case if you are applying for a position that frequently handles money, such as a bookkeeper, an accountant, or a payroll manager.

Importantly, private employers hold the liberty of running credit checks before making job offers. They also hold the liberty of refusing you a job offer if you do not consent to a credit check.

If you are still trying to assess whether a bankruptcy filing is worth it for you, then you must contact a skilled Jefferson County, Kentucky bankruptcy lawyer. We await your call.