You are drowning in debt and have made the decision to file for bankruptcy. That is a huge decision, and you should be proud that you are being proactive with your financial situation.
However, your decision to file for bankruptcy is probably not the news you want to share with others. There could be unjust feelings regarding a person who is filing bankruptcy like their decision-making process that got them into debt.
Because of this stigma, it is advisable not to tell too many people about your bankruptcy. This includes your employer. For the most part, employers are not notified when an employee files for bankruptcy. The only exceptions would be if the bankruptcy is stopping a wage garnishment or if your employer is a creditor to whom you owe money.
Should I Disclose Bankruptcy to an Employer
This begs the question: Do you have to tell your employer about your bankruptcy? The answer is no. You do not have to tell your employer about your bankruptcy. However, there are a couple of situations in which it may be advantageous. For example, if you file under Chapter 13, your employer may be ordered to make deductions from your wages for your repayment plan. This can help you keep up with your payments. If you work in a job that requires a security clearance, you may want to tell your employer about your bankruptcy. This is because your debts can make you a target for blackmail.
Maryland Public Records
Filing for bankruptcy is a matter of public record, but your employer would need to know where to look to find it. Unless they are actively searching for a bankruptcy filing for you, they likely would not ever know. But even if they do find out, the good news is that it is illegal for them to fire you because of it.
Can I be Fired?
The general rule is that you cannot be fired because you filed for bankruptcy. In addition, your employer cannot subject you to adverse treatment, such as a demotion or pay cut, based solely on your bankruptcy filing. However, keep in mind that your employer can still discipline or fire you after you file for bankruptcy if it is for unrelated reasons.
Disclosing to New Employers
When applying to jobs, you legally cannot conceal a past bankruptcy from the employer. They have a right to find out about the bankruptcy and may do so from your credit report. This is because businesses hiring for positions that involve handling money may think twice about hiring someone with a past bankruptcy.
Unfortunately, you do not have much recourse in this situation. However, if you feel as though you have faced discrimination, you may want to consult an employment attorney who can assess your case and explore your legal options.
Get Expert Advice Regarding Bankruptcy
Bankruptcy still has a stigma attached to it. Because of this, you may be wary about who finds out about it. You may not want your employer to know for fear of termination.
The Law Offices of Adam M. Freiman can help alleviate your concerns about bankruptcy. We can answer your questions and give you solid advice. To get started, call (410) 486-3500 or fill out the online form.
