Will I Lose My Job If I Had To File For Bankruptcy?


If you had to file for bankruptcy, it is quite normal to feel mortified that you had to resort such drastic measure. Many believe that the society will mock and ridicule them for their financial woes, and that is the aim why people will do everything to keep this bankruptcy filing a secret. You did not choose to file bankruptcy for the fun of it, it is done out of necessity. With that said, do not be despaired that you had chosen to do so. You should embraced this opportunity to begin your financial affairs anew, and not be depressed over the fact that you had to file for bankruptcy. It must have crossed your mind if your employer can fire you if they find out about you filing bankruptcy.

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Just to maintain your mind at ease, there is no legal precedent to imply that an employer can fire you just because you have filed for bankruptcy protection. It is only in the rarest instance that you can get fired from your job if your employer finds out that you have filed for bankruptcy shelter. If your employer asked you to signed a document stating that you will have good credit score and never file for bankruptcy, then you can risk getting a pink slip. In such situation, the employer has the alternative to terminate your employment because you have broken the legal binding agreement to be financially sound. As far as the law is concerned, it is just inconceivable for an employer to fire you without a legal and documented cause for your firing.

On the other hand, if you are looking for a job in this harsh economic times, it can mean a different story. Some employers base their decision to hire an individual based on some requirements such as passing the criminal background check, and a credit history check. Even though employers cannot straight-out reject your employment with the company based on your bankrupt status (unless the requirement of the job is to have a perfect clean credit history), the employers have many options to reject your application without any justification. If you are applying for a job and there are 5 other people in the running for the same position. Your job application will at one point stand out above the rest, not in a good way because either it will signal you have filed for bankruptcy, or it will appear in the credit report that most employers run nowadays. If all the job seekers have the same type of credentials, chances are higher than the open position will go to someone with a better credit history.

If your employer fires you subsequent to you filing for bankruptcy shelter, you might have an unlawful termination of employment case. Talk to an employment lawyer or a bankruptcy lawyer to see if your case justify additional pursuit. Wrongful termination of employment is a serious offense and you should leave the legal work to a professional lawyer. Even though it is a big drawback to have to file for bankruptcy, it is not the end of the world. Be cheerful and accept as true that filing bankruptcy can only help you in the long run financially.


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