Can Filing for Bankruptcy Impact My Employment?

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While filing for bankruptcy may be beneficial in helping your current financial situation, it may come with lingering side effects. For example, it may negatively impact your future credit score, your ability to obtain loans, and even your ability to obtain employment. Follow along to find out whether bankruptcy can impact your employment and how a proficient Rockland County bankruptcy attorney can advise you on this.

Can filing for bankruptcy make me lose my job?

Rest assured, your bankruptcy will likely not affect your current employment. First of all, unless you personally told your employer that you filed, they are unlikely to independently check your bankruptcy filing status. Even though your filing will be on public records, this is a complex research process that your employer is unlikely to pursue.

Secondly, bankruptcy trustees will unlikely reach out to your employer, and the New York court bankruptcy will not send a notice of your case to your employer.

Also of note, your employer is not allowed to fire you solely on the basis of a bankruptcy filing. In addition, they cannot use this as an excuse to change the terms and conditions of your employment. Examples of this are as follows:

  • Your employer cannot reduce your salary solely due to your bankruptcy filing.
  • Your employer cannot demote you solely due to your bankruptcy filing.
  • Your employer cannot take away your job responsibilities solely due to your bankruptcy filing.

But if you do notice that, immediately after you declared bankruptcy, your employer is treating you differently, then you may have a wrongful termination and/or workplace discrimination claim on your hands.

How might a bankruptcy filing impact my future employment?

Luckily, federal, state, and local government agencies cannot factor in your past bankruptcy filing when deciding whether to hire you. However, private employers need not abide by this rule. And so, it may pose difficult to obtain employment in a private industry later on in your career. This is especially the case if you are applying for a job that handles money, such as bookkeeping, accounting, and payroll.

A future employer may learn about your bankruptcy filing when reviewing your application by conducting a credit check. With this, an employer can refuse to hire you if you do not grant them permission to run their credit check.

And so, if you are still unsure as to whether the pros of a bankruptcy filing outweigh the cons for your unique financial situation, you must consult with a skilled Rockland County bankruptcy attorney. With experience on our side, we will know what the best move is for you. Call to schedule your initial consultation with us today.