Can an employee be fired for filing for bankruptcy?

Can an employee be fired for filing for bankruptcy?

| Dec 2, 2020 | Uncategorized |

Having money problems often comes with a stigma and can lead to judgment from others. Even if Florida residents face financial issues due to problems outside of their control, like facing a medical emergency and accumulating high medical bills, it can still feel as if people consider those individuals as irresponsible or bad with money. In some cases, people may fear that filing for bankruptcy could affect their employment due to the stigma that often comes with it.

Moving forward with this debt relief option could have effects on employment in some respects. For example, a company looking to hire someone to handle financial aspects of the operations may not look favorably on an applicant who has filed for bankruptcy. However, if a person already has a job, an employer cannot terminate, take disciplinary action against or demote the person just for filing for debt relief.

Additionally, if a person already has a job, it is not necessarily required to inform an employer about filing for bankruptcy. However, if a person is utilizing Chapter 13 bankruptcy and is having payments made through payroll deductions, the accounting department at his or her place of employment would receive a notification of that requirement. It could also be necessary to tell an employer if taking this route for debt relief could affect security clearance.

Though the effects of bankruptcy can certainly be far reaching, most workers do not have to worry about putting their employment at risk as an effect of filing for debt relief. Of course, exceptions exist, and it is important that each person understands how taking this step could affect his or her individual employment situation. Nonetheless, Florida residents interested in getting their debt burdens under control may want to discuss their options and the possible effects with experienced attorneys.

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