Will My Employer Find Out? Will I Be Discriminated Against After Bankruptcy?

by Paul R. Tom Basic Bankruptcy Information, News, Updates, Law Changes

Your employer generally has no way of knowing that you have filed a Chapter 7 bankruptcy proceeding. The bankruptcy court will not contact your employer, nor will your attorney. Usually the only way that your employer may know that you filed bankruptcy is if your employer is also a creditor, or if your employer has received a garnishment on your wages and we get the garnishment canceled. Some employers do credit checks upon hiring or for promotions, this would be the only other way your employer or future employer would be aware of your bankruptcy. Chapter 13 payments are paid through a wage deduction, and your employer will be required to send a portion of your paycheck to the bankruptcy trustee. However, your employer cannot discriminate against you because you filed bankruptcy.

Bankruptcy laws specifically provide that a governmental entity cannot discriminate against you based solely on the fact that you have filed a bankruptcy proceeding. This means you cannot be denied governmental benefits merely for having filed bankruptcy. This includes being denied a license. You also cannot be discriminated against in employment because you have filed bankruptcy.