Jul 22

Can Bankruptcy Affect My Employment Status?

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Many people may believe that their bankruptcy is kept between themselves and their bankruptcy attorneys; however, depending on your situation, it is possible that a prospective employer or your current employer will discover your financial troubles. Many employers these days are requesting consent from applicants to allow them to check their credit reports, particularly for positions that involve the handling of money or sensitive information. A chapter 7 or 13 bankruptcy will easily be discovered by a potential employer if you provide consent; it is possible that an employer will not consider your application without it.

At other times, a current employer may discover your bankruptcy through other means. If you have been sued by a creditor and have a judgment against you, and your wages must be garnished, your employer will be alerted to the situation at hand. A chapter 13 bankruptcy in particular is the type of bankruptcy most likely to be discovered by an employer. Sometimes referred to as a “repayment plan,” this bankruptcy allows individuals to gradually repay their debts provided they have a steady source of income. A bankruptcy judge may order payments to be deducted automatically from an employee’s wages. Rest assured that regardless of your financial situation, no government or private employer may consider your bankruptcy as a reason to terminate your position.

Is Bankruptcy Discrimination Legal?

An employer may not discriminate against an employee due to his bankruptcy status by cutting his hours, demoting him, reducing his salary, taking away responsibilities, or other unfair measures; yet, oftentimes employers may cite other reasons for taking these measures as a work-around. If you believe you have been treated unfavorably at work following your bankruptcy, it may be difficult to prove that this is the sole reason for termination, demotion, or otherwise unfair treatment.

Your employer may cite poor job performance, unruly behavior, inability to work well with a team and other behaviors as legitimate reasons for a change of employment status or termination. It is important to work with a Virginia Beach bankruptcy discrimination attorney who focuses on employment discrimination cases to help you develop a strong case.

The compassionate and experienced attorneys at Bertini Law are dedicated to upholding your employee rights. Speak with attorneys Lisa Bertini and Andrea Ruege about your bankruptcy discrimination case to determine the best course of action and work toward a favorable outcome. It may be possible to restore your position or receive restitution for the losses suffered as a result of demotion, termination, or other unfair treatment. Call (757) 222-9165 to schedule a consultation or contact us online.

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