Will a Bankruptcy Filing Make It More Difficult to Earn a Living?

Will a Bankruptcy Filing Make It More Difficult to Earn a Living?

If you have been struggling to make ends meet, you may have been reluctant to seek protection in bankruptcy because you’re afraid it will either put your job at risk, or make it difficult for you to find employment in your chosen field. It’s an important question to address—can your employer take any action against you for filing for personal bankruptcy protection? Can a prospective employer disqualify you because you have a prior bankruptcy filing?

Your Current Job

The bankruptcy laws do not allow an employer to take any type of retaliatory action against an employee because of a personal bankruptcy filing. Accordingly, you can’t be fired, demoted, transferred or incur the change or denial of benefits of privileges because you file for bankruptcy. There are no exceptions—it doesn’t matter if you work in a top secret job, as a trust officer or a construction worker. In fact, you may be at greater risk if you don’t seek bankruptcy protection. Workers in sensitive positions who have financial problems are generally considered more likely to be susceptible to blackmail than workers who have sought bankruptcy protection. This is an area, however, where you have to handle it correctly with your employer to minimize problems.

These rules only apply, though, to actions that take place after a bankruptcy filing. If you have been notified of an impending change in employment status, including termination, before filing for bankruptcy, the bankruptcy laws won’t prevent such change.

Future Employment Opportunities

While private employers are free to exclude candidates who have filed for bankruptcy, state, local and federal governments and agencies cannot discriminate in hiring because of a bankruptcy filing. Even with private employment, a proper approach with the guidance of an experienced attorney can make all the difference. We have many clients who have found jobs after a bankruptcy.

Contact Neuner & Ventura, LLP

At Neuner & Ventura, LLP, weknow that the bankruptcy process can be intimidating and confusing. Weoffer a free initial consultation to every client. For an appointment, call our office at 856-596-2828 or send us an e-mail. We do, however, reserve the right to charge a fee to review any work done by another attorney. Evening and weekend appointments are available upon request.

Representing Clients across South Jersey

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