Winthrop Harbor Bankruptcy Attorney Talks About Employer Discriminat...

You will not be terminated simply for filing a Chapter 7 or Chapter 13 bankruptcy so states Winthrop Harbor bankruptcy attorney.  Bankruptcy law is federal law and you have an absolute right to exercise your federal right to file a bankruptcy and either get a fresh start or reorganize your debt under the Bankruptcy Code.  Your employer is strictly prohibited under the Bankruptcy Code from firing you simply for your desire to file a bankruptcy.  If you can show that your employer fired you were terminated you or demoted you were in any other way discriminated against you based on the fact that you filed a bankruptcy, then you may have a cause of action in either state or federal court.  

In many cases or most cases rather, employers will not even find out that you filed a bankruptcy.  The most common time that I have to notify an employer about one of my client’s bankruptcy filings is to actually stop a wage garnishment that is already occurring.  Once the Chapter 7 or Chapter 13 bankruptcy case is filed, I will fax or mail an automatic stay to the employer.  The automatic stay is a one-page document which contains the name, the case number and the date of filing as well as information advising the creditor or the payroll department from stopping any type of collection activity or garnishment activity.  So when you are actually being garnished on the job and then you file a bankruptcy, you want your job to know about your bankruptcy so they immediately stop the current wage deduction on your check. 

In a Chapter 13 bankruptcy case, your employer will find out about your bankruptcy if you go on payroll control.  Payroll control is where the Chapter 13 trustee payment comes directly out of your payroll.  Going on payroll control is the best idea and the best way to ensure that you are going to make your Chapter 13 trustee payment on time.  As long as you are working as you keep working and you are steady at your job, there is going to be income therefore the employer to pay over to the Chapter 13 trustee.  Once the Chapter 13 trustee is paid each month, you as the debtor only have to worry about your existing mortgage going forward and your normal utilities. 

So your job will find out about your bankruptcy if you are doing a Chapter 13.  Your job will find out about a Chapter 7 bankruptcy if we need to stop a garnishment on your behalf.  However, do not worry that your employer will terminate you.  Terminating you simply for your filing of a bankruptcy case is illegal and is not likely to occur.  Should it occur, you do have the right to file suit based on the Bankruptcy Code.