On November 28, 2023, our new mailing and physical address will be 110 Glancy St., Ste. 109, Goodlettsville, TN 37072.

Can you be fired for filing for bankruptcy?

On Behalf of | Dec 29, 2023 | Bankruptcy

It’s stressful to have debt hanging over your head. Excessive debt is one of the chief causes of the kind of psychological distress that can lead to broken marriages, chronic health problems, trouble sleeping and more. 

Bankruptcy offers real financial relief – but a lot of people are hesitant to file because they’re afraid their employers will find out and fire them. 

You’re protected by law – if your employer even finds out

Most of the time, employers never find out when their employees file for bankruptcy. While bankruptcies are public records, you have to actually go looking for them – and your employer probably isn’t that curious (or intrusive). 

Realistically, your employer is more likely to find out about your debt problems if you don’t file for bankruptcy. Eventually, your creditors may seek to track you down through your employer and harass you at work, which can be embarrassing. You may also find yourself facing garnishment of your wages over certain debts, in which case your employer will definitely be involved.

Ultimately, the Bankruptcy Code itself protects you from being fired. Under the law, it’s illegal for an employer to discriminate against you simply because you have gone bankrupt. If your money issues are a concern for some reason (such as when you work in the financial sector), the fact that you are being proactive about resolving your debts is actually a positive. Someone with a mountain of bills could be ripe for a bribe or a security risk, while someone who is upfront about their financial troubles can be regarded as trustworthy.

Don’t let your fears about the future stop you from dealing with your debts today. Legal guidance can help you understand more.


FindLaw Network

I know you are working diligently for me and my family. It means EVERYTHING to us, and you have been so gracious in your efforts.

Thank you for that, as well as your entire staff. Remarkable.

-Kevin M.

More Testimonials