Can I be fired for filing bankruptcy?

No. Employers, both government and private, are federally prohibited from firing any employees upon learning that they have filed bankruptcy. If your employer just recently learned that you declared bankruptcy and subsequently dismissed you from your job, you may have a bankruptcy discrimination case. If a lot of time passed and the employer can prove in court that you were fired for reasons other than the bankruptcy (like being late, absent, or negligent of your duties), then it is unlikely your case will stand a chance, however.

How would my employer ever find out if I filed?

In most cases, they do not, but a lot of this depends on the chapter bankruptcy you file. The only circumstances when they may find out is if you are forced into Chapter 13 Bankruptcy and the court mandates that your payments are withdrawn from your paycheck (which is highly possible), your payroll department will inevitably learn that you’ve declared bankruptcy.

Can I refuse to allow the court to deduct from my paycheck what I pay to the court trustee?

Yes, but many courts will subsequently disapprove of your plan because the likelihood of successful completion of your payment plan without automatic deductions is low.

Can I be denied a job if a potential employer saw I filed bankruptcy from my credit report?

If the employer is a private company, yes. For local, state, and federal government jobs, however, you cannot be rejected, declined, or refused employment for this reason.

Can I be denied a promotion if my job found out that filed?

No. The basic rule of thumb is that an employer can only consider before offering you work. After that, they have to ignore the bankruptcy completely from any decisions they make regarding your career.  

I work for the FBI. Will I be denied a security clearance?

Possibly. On the flipside, you are likely to be denied security clearance if you owe a lot of money and are past due. After all, who is more likely to be bribed---the desperate person with a lot of financial problems, or the person with a bankruptcy on their credit report? Taking action is obviously the best option and of course, bankruptcy is only appropriate as a last resort. If you can avoid it, that route is probably a better alternative.

Where can I find information about bankruptcy discrimination laws?

To get started, here’s a good resource to check out about bankruptcy & employment issues.

This makes me nervous about filing. What are my other options?

You can try to resolve your debt through debt settlement or credit card debt counseling. Both of these options offer the convenience of one low monthly payment, and fortunately, it is rare that your employer will ever learn of your enrollment in these types of programs, although there may be indications of it on your credit report. That said, credit effects are not as severe as those felt after bankruptcy.

Where I can I learn more about these types of debt services?

Right here. If you are interested, you can let PayingPaul.Com match you with a pre-qualified provider of debt management to get back on your feet financially today! All you have to do is submit a form with your contact information.