Tap to Call - (877) 250-8242

Effects of Bankruptcy on Employment

If you're considering filing for bankruptcy as a way of eliminating your debt and getting back on your feet financially, you're probably wondering what effects bankruptcy might have on your future, including employment prospects or on your status at your current job.

The truth is that every situation is unique. To speak with a bankruptcy lawyer directly about these concerns, please fill out this form. You can arrange your free, no-obligation consultation with an attorney near you today.

What Are Some Effects of Bankruptcy on Employment?

It's true that bankruptcy may affect many aspects of your life. Here's a look at what you can expect from current and future employers if you choose to file for bankruptcy.

  • It's illegal to fire someone for filing for bankruptcy. If you're worried about losing your job simply because you've entered into bankruptcy protection, rest assured that, in many situations, certain employers are prohibited from firing an employee for filing bankruptcy. One exception to this rule could be if you work in a position that requires you to manage financial information, you may see some workplace consequences for a bankruptcy filing.
  • Employers may conduct a pre-employment credit check. If you're worried about a past bankruptcy filing affecting your ability to get jobs in the future, check your state's laws. Some states have outlawed pre-employment credit checks, though in much of the country they're still legal.
  • Employers may refuse to hire you for finance-related jobs because of a bankruptcy filing. Even in states where pre-employment credit checks have been outlawed for most jobs, they may still be legal for certain finance-related jobs and jobs that require higher security clearance. And an employer may be backed by the law if he or she opts not to hire you because of a bankruptcy in your past.
  • Debt collectors cannot contact you at work once you've asked them to stop. If you're considering bankruptcy as a way to halt calls from debt collectors, you should know that debt collectors are not permitted to contact a you at work after they have been asked in writing to cease such contact.
  • Debt collectors cannot contact your boss or coworkers if they have your information. Similarly, debt collectors are barred from contacting people at your workplace and telling them about your debt. If you've experienced such harassment, you may want to speak with a bankruptcy lawyer to explore your legal options.
  • Bankruptcy can halt wage garnishment. Thanks to a protection called the automatic stay, filing for bankruptcy can halt collection actions like wage garnishment as soon as your case is filed with the court.
Speak to a Bankruptcy Lawyer Today

Find out More about the Effects of Bankruptcy on Employment

Whether you're interested in learning about how a past bankruptcy might affect you in future job search or whether bankruptcy can affect your status at work, you may benefit from talking with a bankruptcy attorney practicing in your area. Simply fill out the case review form on this page to connect with a lawyer near you today.


Tap to Call - (877) 250-8242

PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 400, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.

FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.

If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.

By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.