Can you get fired for filing bankruptcy?

Bankruptcy feels like a personal matter, but you really want to think through all of the potential ramifications in advance. You’re worried that your employer may find out that you filed and then terminate your position.

Even though you’re bankrupt, you do have an income. That’s why you’re planning to use Chapter 13 to set up an affordable repayment plan. That plan hinges on the fact that you have a job, and losing it after you file will make it impossible to pay off those debts.

So, is this something you need to worry about?

It shouldn’t be. Technically speaking, there are anti-discrimination laws in place. You cannot face discrimination at work based on the bankruptcy, whether you work for the government or for a private company. This means that they cannot choose to fire you solely because you filed.

That said, companies may try to hide the discrimination by offering up another reason for your termination. It can become difficult to show without a doubt that you got fired because you filed for Chapter 13.

In addition, the reason that you’re filing bankruptcy may be a big-picture issue that leads to your firing. Bankruptcy often happens after divorce, medical emergencies and things of this nature. Does the reason you had to file also give your company a reason to fire you? The bankruptcy may not cause your termination on its own, but the whole situation could still lead to you losing your job.

As you work through this process, it is very important to consider all potential outcomes so that you can make the best possible plan for your financial future.

Source: The Balance, “Will You Lose Your Job If You File Bankruptcy?,” Carron Armstrong, accessed May 16, 2018