Will My Employer Know?
In some cases, your employer will never know that you’ve filed. For example, perhaps you qualify for Chapter 7. That process involves liquidating any assets that the court considers to be over and above what you need to maintain a reasonable standard of living. The proceeds from the sale are divided among your debtors by the trustee. Any remaining debt is dismissed.
Your employer is only likely to find out about the action if they run a credit check or if you choose to tell someone in the company what has happened. In fact, no one has to know unless you choose to say something.
Should you file a Chapter 13, there is a greater chance of your employer knowing about the action. That’s because the employer will be notified by the court and served with documents authorizing the garnishing of your wages. The only way this would not happen is if the court chooses to allow you to make payments directly rather than through your employer.
Remember that anti-discrimination clauses related to these types of filings prohibit an employer from demoting you or terminating your employment because of the action. Assuming there are no other reasons to move you to a different position or to fire you, your job is safe.
What About Possible Promotions?
For people who are employed with local, state, or federal entities or who are members of the military, a Chapter 7 or Chapter 13 will not limit the possibility of receiving a promotion. If you work for a private company, that’s not necessarily the case.
Private employers vary in terms of how they evaluate employees for promotions. While your current position is safe, the decision may be made to focus on candidates with similar skills and experience, but who have not sought any type of protection via the courts. In many cases, you may find that after your Chapter 7 or 13 is dismissed for a certain number of years, it may cease to be a consideration.
Will It Affect My Ability to Secure a New Job With a Different Employer?
Remember that all types of employers routinely run credit as well as background checks on prospective employees. That means a potential employer is sure to find out that you have a Chapter 7 or 13 in your recent past, or that you are currently submitting payments on a Chapter 13 action.
The smartest move you can make is to be up front about your bankruptcy filing. It’s up to you to decide when to reveal this information. A good rule of thumb is to proactively share the fact that you had a Chapter 7 a couple of years ago, or that you have another year before your Chapter 13 is dismissed during the first or second interviews.
Government agencies at all levels will not consider the action when evaluating your qualifications and work history. Many private employers will also give little to no attention to the fact you sought protection from the court in the past. Most employers will appreciate your candor and the fact they didn’t have to learn about the action via your credit report.
How Will Filing Bankruptcy Affect My Job? The bottom line is that filing for a Chapter 7 or Chapter 13 action in Savannah GA will not in and of itself put your present job in danger. Under certain circumstances, it could limit your options for promotions for a time. Take that into consideration as you seek to find the most practical way to deal with your debt. Doing so will make it easier to choose the right solution and be happy with your choice in the long run.
Find out more about Bankruptcy in our guide: All About Bankruptcy
Learn about the ways bankruptcy can help you. If you are considering filing for bankruptcy, contact Barbara Braziel Law today. We specialize in helping people like you get their finances back on track with a caring and capable staff.
Contact us for a free consultation by clicking here or calling (912) 351-9000. We’re here to help you gain the financial freedom you deserve. The Law Offices of Barbara B. Braziel proudly serves the greater Savannah, GA area.
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We are passionate about helping good, hard-working families like yours work out their debt problems. Many Georgia families have been overwhelmed due to the declining economy and find themselves with more credit card debt and student loans than they can manage. Credit card companies and banks are quick to send out credit cards and provide high limits but aren’t as helpful when things get tough. Also, creditors are often quick to sue when people get behind. We believe that helping you to settle these debts and in representing you by working with your creditors to stop the harassment. We believe that the old fashioned way of doing business is the best. We want to sit down with you so we can understand your needs and create a strategy to address them. Our purpose is to focus on each family right here is Savannah.