Will My Employer Know About My Bankruptcy Filing?

Unfortunately, still in this day and age, there is a negative stigma surrounding bankruptcy. This is even though filing for bankruptcy may be the best decision for yourself and your family, so that you may get a fresh start financially. However, you may be insecure about how people may judge you based on this decision you made, and understandably so. Specifically, you may be worried about how your employer is going to react if and when they find out. In this case, please read on to discover whether your employer will know about your bankruptcy filing and how a seasoned Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help protect your current job status.

How might my employer know about my bankruptcy filing?

Well, before you take the plunge and declare bankruptcy, you should know that your case will make it to the public record. This is to say that your employer may take it upon themselves to look through the PACER case locator to see if you have any history of bankruptcy filings. However, they may rarely do this independently if you have otherwise kept this a private matter at work.

But a more realistic way your employer may learn about your bankruptcy case is if you specifically file for Chapter 13 bankruptcy. This may be if, before your petition, your employer was ordered to garnish your wages to pay back your creditors. With this, you or your lawyer may have to request that your employer stop this activity during your bankruptcy proceedings.

In another scenario, the Kentucky bankruptcy judge may order your employer to take funds from your paycheck and give them to your trustee directly. This is to help you fulfill the obligations of your court-ordered, three- to five-year repayment plan.

Lastly, your employer may be in the know if you owed them money in the first place. For example, your employer may have paid for your training and educational courses that were not part of your employment agreement. With this, your employer may get direct notice of your bankruptcy case along with the rest of your owed creditors.

Will my bankruptcy filing affect my current job status?

In short, federal employment law prevents your bankruptcy filing from affecting your current job status. Namely, you cannot get demoted, cut wages, or be demoted solely on the grounds of your bankruptcy. If you do, then you may have a solid workplace discrimination claim on your hands. However, this is not to say that your future job prospects may be easy after your bankruptcy.

In conclusion, a competent Louisville, Kentucky consumer bankruptcy lawyer can help kickstart your legal action today. Our team at Schwartz Bankruptcy Law Center will happily take on your case.