Even though bankruptcy has become so common it has lost much of its social stigma, a lot of people are still concerned about the way that they might be judged by others – especially their employers.
If you’re contemplating bankruptcy but you’re worried about whether your boss may find out, here are the things you need to know.
Your boss may already know you have financial problems
If your boss doesn’t already know that you’re experiencing money troubles, they may soon – especially if any of your creditors take legal action and get a judgment against you. A successful lawsuit by a creditor can allow them to obtain a court order that will garnish your wages. At that point, your employer will most certainly know about your struggles with your debts.
An employer cannot take adverse action against you for bankruptcy
Even if your employer learns that you have filed for bankruptcy, they are legally prohibited from discriminating against you solely based on that fact. This means that your boss cannot demote you or fire you for your financial issues.
Your employer may consider you to be less of a risk after the bankruptcy
Anybody can end up going through financial challenges, and bankruptcy offers a proactive approach to the situation. If your employer routinely does credit checks on their employees, your bankruptcy filing will probably be visible. However, it will likely be seen as a path toward financial recovery. That makes you less of a security risk than someone who is trying to find another way out of their troubles.
Do not let the fear of other people’s judgments stop you from doing what’s best for you and your family. Learning more about the bankruptcy process may help you decide what move to make.
