Will Filing for Bankruptcy Affect My Job?

Bankruptcy is not the end of the world. However, many of those who undergo the process may feel unnecessarily embarrassed about their financial situation. The reality is that credit scores recover after a few years, and there are laws in place to prevent employers from firing employees on the sole basis of a bankruptcy. The fact that someone took the bold step to file for bankruptcy shows initiative to confront his or her financial woes. Those concerned about the status of their employment as it relates to bankruptcy should be aware of the laws regarding employment discrimination, so that they know when it may be time to call a lawyer.

Will a Bankruptcy Affect My Current Employment?

If you are currently employed, it is against the law for your boss to change the terms and conditions of your employment due to your finances. This is not limited to termination, but also includes change of salary, job title or responsibilities. Oftentimes, employers use minor infractions as a guise for terminating an employee because of their bankruptcy.

For example, an individual comes to work five minutes late, a common and easily forgivable occurrence for a number of employees. The employee’s boss has recently learned of his worker’s bankruptcy, and decides to terminate the employee on the grounds of tardiness. At this point, it is in the employee’s best interest to call an experienced bankruptcy lawyer who can link the termination to the bankruptcy.

Those employed by governmental organizations have a host of different discrimination protections to ensure that they are not treated any differently on the basis on their bankruptcy. A governmental organization cannot deny a permit, charter, franchise or contract to anyone because of a bankruptcy.

If your employment with a government agency is contingent on a security clearance, then bankruptcy may be your best bet. The military and Central Intelligence Agency (CIA) often deny security clearances to those with bad credit out of fear that they will become the target of blackmail. However, filing bankruptcy will improve your credit score over time, improving your security clearance eligibility.

I Need an Attorney to Help With Filing for Bankruptcy

Filing for Chapter 7 or Chapter 13 bankruptcy and understanding how it affects the rest of your professional life are complicated matters. Working alongside an experienced bankruptcy attorney can help you sift through the confusing paperwork and see the clear way out of your financial woes. The Law Firm of Kevin D. Judd has years of experience helping those in the Washington DC and Maryland areas sort through their debt and make a fresh start. For more information and free legal advice, do not hesitate to get in touch with us; we are happy to help.