It is not uncommon for individuals to worry whether or not their employer will find out if they file bankruptcy. Aside from the fact that most people view their financial circumstances as private, many might wonder what their employers would think of them if they filed bankruptcy.
The answer is that your employer probably will not find out that you filed bankruptcy. However, it is not impossible. There are a few common ways in which an employer may find out about your bankruptcy filing:
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Bankruptcy filings are public records. As a result, an employer can find out about your bankruptcy filing this way, though it is highly unlikely.
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If your employer regularly conducts credit checks, it may find out this way, as a bankruptcy filing will appear on your credit score. -
If you owe money to your employer, you will have to list that debt on your bankruptcy schedules and your employer, as one of your creditors, will get notice of the bankruptcy filing through those means.
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If your bankruptcy filing stops a wage garnishment, your employer will most likely find out about your bankruptcy filing simply because it must be informed as to why it should stop abiding by the wage garnishment order
While the above scenarios may lead to your employer learning of your bankruptcy filing, it is important to note that the U.S. Bankruptcy Code prohibits both governmental and private employers from firing you because you’ve filed bankruptcy.
For more information in connection with your bankruptcy, please contact the VC Law Group at info@thevclawgroup.com or 858.519.7333.