Will My Employer Know If I File Chapter 7 or 13 Bankruptcy in PA?
Filing for bankruptcy can be a scary process for many people. This is especially true for those who have never been part of one of these incredibly complex processes. Many people may worry they will lose everything they worked so hard to get, such as their employment. This fear stems from the belief their employers will be notified about their bankruptcy process, which may trigger their firing. However, your employer may notice you filed bankruptcy under specific circumstances. Our Pennsylvania bankruptcy attorneys at Young Marr & Associates invite you to keep reading as we discuss whether your employer may find out about your bankruptcy process.
Can My Employer Find Out if I Filed Bankruptcy in Pennsylvania?
Bankruptcy petitioners may be concerned with their filing. Many debtors fear their employers may find out about their bankruptcy. Furthermore, they fear there may be repercussions in their workplace because of their filing. While this may be a real concern for many, the truth is you should not be worried about your employer finding out about your bankruptcy case.
Generally, your employer does not have to know you have filed for bankruptcy, the Chapter under which you filed, and the status of your case. While your bankruptcy information may be part of the public record, your employer most likely will not venture into the public record looking for your specific name and bankruptcy case. As a general rule, your employer does not need to be notified about your bankruptcy case. However, your employer could still find out about your bankruptcy depending on the circumstances of your case.
For instance, your employer may be aware you are filing for bankruptcy. This is especially true if you owe money to your employer. In a Chapter 13 bankruptcy process, you need to provide specific information related to your debt, which may include your employer (as a participating creditor). Even if your employer is not one of your creditors, a court may issue what is known as a “wage garnishment order” which your employer has to comply with. When the court issues a wage order, they are expected to deduct part of your wages to use as payment in your Chapter 13 case.
Another way an employer may find out about your bankruptcy is through the employment process. Many employers tend to do a background check, which can include taking a look at your credit report. This is especially true for people looking to work within the financial industry. In a nutshell, your employer will not be informed about your bankruptcy unless your case justifies it due to the reasons provided above.
What Happens if My Employer Finds Out About My Bankruptcy?
This is a question that may pop up into the minds of many workers who are facing the possibility of bankruptcy. One of the primary concerns many workers may have when facing bankruptcy is what will happen to their job if their employer finds out about their Chapter 7 bankruptcy or Chapter 13 bankruptcy process. Some people may feel the social stigma surrounding bankruptcy will affect their job, or that filing for bankruptcy can legitimize their employer to fire them if they choose.
It is essential to understand your employer cannot fire you because you filed for bankruptcy. Section 525 of the Bankruptcy Code serves as a way to prohibit employers from retaliating against employees by firing them because of bankruptcy. Your employer, however, can take action against you for other things unrelated to your bankruptcy case. For instance, your employer may be able to take action against you for things such as lack of productivity, tardiness, and absenteeism, among others. Furthermore, bankruptcy law also prohibits employers from engaging in discriminatory actions because of bankruptcy. For instance, your employer cannot lower your salary or demote you because you filed for bankruptcy. However, this protection may not be available in all instances. Not all employers are expected to refrain from discriminating actions. Some employers can reject a potential employee because of their bankruptcy. According to law, protection against discriminatory actions applies to government employers. On the other hand, employers in the private sector may decide to reject you.
Why Do I Need a Bankruptcy Attorney to Help Me File in Pennsylvania?
Bankruptcy is a complex, nuanced legal process filled with different rules, law sections, and convoluted language that can prove to be too much for inexperienced petitioners. Bankruptcy requires petitioners to make their case by providing all necessary documents and making sure they meet all the requirements set forth by bankruptcy law. As a petitioner, you have the option of representing yourself in your bankruptcy case. However, the bankruptcy court will expect you to manage your situation as an attorney would. Bankruptcy procedures will not be changed to adjust to your knowledge of bankruptcy law. The court will expect you to handle your case as an attorney would.
Many people don’t have the experience or the necessary skills to handle their case as a bankruptcy attorney. For this reason, it would be in your best interest to be represented by a skilled Bucks County bankruptcy lawyer who can guide you through the entire process. Having quality legal representation by your side during the bankruptcy process helps you get a better chance of successfully completing your bankruptcy process.
Pennsylvania Bankruptcy Attorneys Offering Free Consultations
If you or someone you know is looking to file bankruptcy in Pennsylvania, we can help. For many years, our Philadelphia bankruptcy lawyers at Young Marr & Associates have the skill, experience, and knowledge required to handle your case from start to finish. We strive to work with you, keep you informed at all stages of your case, and make sure you meet all the requirements set forth by bankruptcy law. Don’t let false rumors about bankruptcy law prevent you from getting the financial relief you need and deserve. To learn more about our services and how we can assist you, call our law offices today at (866) 781-4058. We offer free, confidential consultations.