Bankruptcy can be a very embarrassing and private matter that many people do not want anyone to find out about, especially their employers. When you file for bankruptcy there is no requirement that your employer be informed. The court does not automatically send notice to your employer and the debtor is not required to tell them.
There are ways a debtor’s employer may find out about a bankruptcy. One way is by doing periodic credit checks. Now most employers only do credit checks when they are hiring new employees, but when anyone checks a debtors credit they will see any bankruptcy filings within the last ten years.
The other way an employer may find out about a bankruptcy filing is through a wage directive or pay order in a chapter 13 case. Some jurisdictions require that a pay order be filed in the case to insure that the plan payment is paid each month. The wage order is mailed the debtor’s pay roll and then the plan payment is garnished from each paycheck. If the jurisdiction requires that a pay order be filed the Debtor’s attorney will need to request that the court wave the pay order. This can be done either with a motion or by agreement with the Trustee.
If your employer does find out that you filed bankruptcy there are laws that protect debtors from discrimination for filing bankruptcy. Private employers may not fire you or punish you because you filed for bankruptcy, however, a future employer can take your bankruptcy filing into consideration when choosing to hire you.
If you are considering filing for bankruptcy please contact the experienced attorneys at Fears | Nachawati for a free consultation. Call us at 1-866-705-7584 or send an email to fears@fnlawfirm.com .