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When your income is the only thing keeping you afloat in a sea of debt, you’ll naturally wonder how bankruptcy will affect you. Let us tell you as early as now— in most cases, filing for Raleigh bankruptcy will have zero effect on your current job and your work prospects.
In fact, it can help you become more effective at what you do. When you’re not worrying about getting evicted, keeping the lights on, and avoiding creditors, you’re better able to focus on your job while you work on getting out of debt. Let’s take a closer look.
Can you lose your job due to bankruptcy?
The short answer is no, you won’t lose your job when you file for bankruptcy.
No employer – both private and government – can fire you just because you filed for bankruptcy in Raleigh. On top of that, they cannot use your bankruptcy filing as an excuse to change the conditions or terms of your employment.
For example, they cannot:
- Demote you
- Decrease your salary
- Take away any of your responsibilities
Do note that bankruptcy will not protect you from these actions if your employer has valid reasons for taking them, such as incompetence, dishonesty, and tardiness.
However, let’s say you got fired shortly after your employer or company finds out about your bankruptcy, and there is no other justification other than the bankruptcy itself. We strongly suggest you contact the Weik Law Office ASAP, and we’ll help you figure out your next steps.
Now, if you’re already unemployed and wondering how it will affect your filing, please read our article on How Employment Affects Your Application for Chapter 7 or 13 Bankruptcy in Raleigh.
Do you have to tell your employer that you filed for bankruptcy?
In general, you don’t have to inform your employer about your bankruptcy. However, please check your contract very carefully, as some specifically require employees to inform them about bankruptcy. This happens more often if you work in a financial role or organization. If you’re not sure, you can bring your contract to our office, and our bankruptcy lawyer in Raleigh, NC will be happy to go over it with you.
How Employers Can Find Out About Your Bankruptcy
Employers rarely find out about a bankruptcy, but there are situations when it does happen. Below are some:
- When a wage garnishment stops
If your wages are currently getting garnished, the automatic stay can stop this. However, your employer needs to receive a bankruptcy notice to halt the garnishments. In our experience, many employers take this in a positive light, because it’s proof that you’re taking affirmative steps to get your finances under control.
- When you’re making Chapter 13 payments
In some cases, the judge can order your employer to automatically deduct some of your payments from your wages.
- When you owe your employer money
When you fill out your paperwork for bankruptcy in Raleigh, you’ll be required to list all of your debts. This includes any debt you owe your employer. As a result, they will receive notice of your bankruptcy case
Keep Your Job Safe While Wiping Out Your Debt Today
Our Weik Law attorneys will be happy to explain this in-depth during our one-on-one discussion. We are on your side every step of the way, and that includes doing our best to help you keep your job, home, and loved ones safe while we help you get rid of your debt.
Contact Weik Law Office today at 919-845-7877 to schedule a FREE consultation with one of our trusted and friendly bankruptcy attorneys.