Filing Bankruptcy: Will my Boss Find Out?

InterviewFiling for bankruptcy can elicit any number of fears: what will my family think? Who will find out? Can I lose my job?

All of these are normal concerns and issues that our Westchester bankruptcy attorneys will discuss during your initial consultation.

A bankruptcy is a public record, and it will show up in your local legal newspapers. However, the negative stigma associated with bankruptcy is very minimal….you will not be walking around with a big scarlet “B” on your chest.

The bankruptcy court will only notify those creditors to whom you list in your bankruptcy case; these are your credit cards, medical debt, student loans, co-debtors, etc. In a Chapter 7 bankruptcy, those are the only individuals that will receive notification.

However, in a Chapter 13 reorganization bankruptcy, the Courts require that your bankruptcy payments are deducted from a “regular source of income”. That means a Court Order will be sent to your payroll department requesting they deduct a certain amount from your paycheck and mail it into the Bankruptcy Court – very similar to a child support order.

Keep in mind, this Order goes to your payroll department – not your boss’ home address.

Federal law further states that one cannot be discriminated against merely for the filing of a bankruptcy. While there can always be other reasons for termination, bankruptcy cannot be one of those reasons.

Our attorneys have filed cases for all occupations, from doctors to laborers to federal employees. Most payroll departments will actually view a bankruptcy filing as a positive step to properly managing your finances – much better than a garnishment. You are taking the necessary steps to keep your debt under control so your focus can remain on your job rather than your creditors.

Please contact our Westchester Bankruptcy Attorneys today at (914) 864-2465 or (845) 628-4301 to discuss which option is right for you. Our Westchester lawyers will work with you to manage your debt and help you understand your rights under the bankruptcy code.

photo by: Alan Cleaver