Bankruptcy Lawyer in Salt Lake City | Relax, you cannot be fired for filing bankruptcy!

There are a number of reasons that people drag their feet before finally deciding to file chapter 7 bankruptcy, or chapter 13 bankruptcy; not the least of which are negative social stigmas, and a belief that they can turn their situation around without the help of a bankruptcy attorney in Salt Lake City.  And these concerns are perfectly valid.  The decision to file bankruptcy is not an easy one.

However, there are also a lot of bad reasons that people drag their feet before filing bankruptcy.  These reasons are often based on bad information, and as a chapter 7 bankruptcy attorney in Salt Lake City, part of my job is to dispel myths about filing bankruptcy.  Thus, I’m taking care of one of those bad reasons today: worries about losing your job because of filing bankruptcy.

First of all, I’d like to point out that it is unlikely that your employer will ever find out that you filed bankruptcy.  For starters, the Bankruptcy Court is not going to mail your employer a notice telling them that you filed bankruptcy.

True, your employer could find out if they look.  The identities of people filing bankruptcy are posted on calendars on the Utah Bankruptcy Court website.  And if one takes the time to sign up for a membership to the federal PACER database, which gives you access to various filings in federal courts, they could search for bankruptcy filings by name.  But how likely is that to happen?  My guess is that your employer has better things to do than periodically check bankruptcy filings to see if any of their employees have filed.

In my experience, the only times my client’s employers have been aware of their bankruptcy filings is where there is a wage garnishment that needs to be stopped, there will be some communication with the payroll department.

Even in that situation, though, you need not worry.  Your utah chapter 7 Bankruptcy Attorney can tell you that there is a very clear law that prevents employers from firing people for filing bankruptcy!  It’s located at 11 U.S.C. section 525(b), and it states:

No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt.

(a similar provision applies to government employees as well, it’s located a section 525(a))

So, if you’re in financial trouble, but you’re dragging your feet take advantage of our free consultations and TALK TO A FREAKIN SALT LAKE CITY BANKRUPTCY LAWYER!  That way, at least you won’t be holding back from filing bankruptcy for a bad reason.


One thought on “Bankruptcy Lawyer in Salt Lake City | Relax, you cannot be fired for filing bankruptcy!

  1. Pingback: Your Utah Chapter 7 attorney discusses bankruptcy impact on credit scores | Salt Lake City Bankruptcy Attorney

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