Can an Employer Not Hire Me if I Filed for Bankruptcy?

Filing for Chapter 7 bankruptcy protection can liquidate most, if not all of your debts over a relatively short period of time. This means that your personal liability on most if not all liabilities is eliminated. While having Chapter 7 bankruptcy on your credit report can complicate securing new forms of financing, can it prevent you from landing a job?

Before you go through with any kind of bankruptcy filing, always make sure to sit down and talk with a bankruptcy attorney. An Arizona bankruptcy lawyer can help you understand exactly how Chapter 7 and Chapter 13 bankruptcy will affect you currently and in years to come.

Current Job

You will not lose your current job for the reason that you file for Chapter 7, 13, or any other form of bankruptcy protection. It doesn’t matter if you work for the government or in the private sector. You also won’t lose any salary from your employer; you cannot be garnished by a creditor while in a bankruptcy for any preexisting debt with the exception of child support. 

If you currently have a job and your salary has been garnished before filing for bankruptcy, the wage garnishments will be discontinued due to filing Chapter 7. If the wage garnishment is discontinued, your place of employment may learn about it, but only the company’s accounting department.

New Jobs

If you are between jobs or are considering moving on from your current job, you may wonder if filing Chapter 7 will affect you. In general, a potential employer is not going to find out about Chapter 7, nor do you need to disclose this kind of information. 

Seeking Professional Help

Contact The Law Office of Larry P. Karandreas. We’ll help you determine the best bankruptcy filing for your current situation.

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