Struggling with debt can be a heavy burden to carry alone. While you want to file for bankruptcy, you worry that this can affect your employment status. Fortunately, the law offers protections for those seeking a fresh financial start.
Your protections under federal law
Under federal bankruptcy law, public and private employers cannot discriminate against you solely due to bankruptcy. They also cannot use this reason to change your employment terms, including your rank, work shift and pay.
While the law is on your side, it is important to remember that employers can still fire you for cause unrelated to the bankruptcy filing. If they find that you have been performing poorly or engaging in misconduct, these are grounds to terminate your employment.
Your paycheck’s safety
You might worry that bankruptcy labels you as an unreliable employee. In reality, this will not happen, thanks to the Automatic Stay. This prevents creditors from contacting your employer to garnish your wages the moment you file. However, the stay does not stop the withholding of income for domestic support obligations.
When you should take action
Federal law ensures that your bankruptcy filing does not jeopardize your employment. However, be wary of silent discrimination. If you notice sudden shifts in how your supervisors treat you, documentation is key to ensuring your rights are upheld.
Bankruptcy can be intimidating to navigate. It is wise to consult with a bankruptcy attorney who can guide and help you maintain your professional standing while you reset your finances.