Why Filing For Bankruptcy Won't Cost You Your Job

Filing for bankruptcy is a significant event in your life that comes with various consequences. One of the most common questions asked by individuals seeking bankruptcy relief is whether filing for bankruptcy affects their job status. The fear of losing your job can be overwhelming, and you need to understand the possible outcomes of bankruptcy on your employment status. 

At the Carroll Law Firm, P.C, we understand the financial hardships that many New Jersey residents are going through. Our team of experienced bankruptcy lawyers is here to guide you through the bankruptcy process and answer all the questions you may have. In this blog post, we shall explore how filing for bankruptcy affects your job and what you need to know before deciding to file.

Can I Get Fired For Filing For Bankruptcy?

Filing for bankruptcy is your legal right, and federal law prohibits discrimination against individuals who file for bankruptcy relief. Therefore, you cannot be fired, demoted, or discriminated against in any way solely because you filed for bankruptcy. If your employer threatens to fire you for filing bankruptcy, you have legal options to protect your rights.

How Will Filing For Bankruptcy Affect My Job?

Although your employer cannot fire you for filing for bankruptcy, there are some practical issues that you need to consider. If your job involves handling finance or sensitive information, such as a bank, investment firm, or government agency, filing for bankruptcy may cause problems. However, it does not necessarily mean that you will lose your job. Some employers may require you to inform them of your bankruptcy filing, and failure to do so may cause problems, especially if they reveal the bankruptcy on a background check, which is typically conducted on job applicants.

Chapter 7 Vs. Chapter 13

Choosing between Chapter 7 and Chapter 13 bankruptcy comes with different consequences for your employment status. Chapter 7 bankruptcy discharges most of your unsecured debts, while Chapter 13 sets up a repayment plan that lasts for three to five years. If you file for Chapter 13 bankruptcy, you will have to report a regular income and use it to pay off your debts. This may affect your employment status if you work in a job that requires handling finances. On the other hand, Chapter 7 bankruptcy does not have an income requirement or a repayment plan, making it more preferable for individuals with no steady income.

How Can Carroll Law Firm, P.C Assist With Bankruptcy Matters?

If you are considering filing for bankruptcy, it is essential to have a reliable bankruptcy lawyer by your side. At our firm, we provide legal representation for individuals and businesses seeking bankruptcy relief. Our team of experienced lawyers will help you navigate the complex bankruptcy process and advise you on the best way to protect your assets, including your job.

Filing for bankruptcy is a life-changing decision that should be made with caution. While it may not affect your job status, it is essential to understand the possible impacts and have legal guidance throughout the process. At Carroll Law Firm, P.C, we have helped numerous New Jersey residents through bankruptcy and provided them with the bankruptcy relief they need. Contact us today to schedule a free consultation and start your journey to financial freedom.