Filing for bankruptcy is a deeply personal decision, and if you’re considering it, you’re likely wondering how it could impact your employment. The good news? In most cases, bankruptcy will not affect your current job, and it may even help you perform better at work by relieving the stress of overwhelming debt.
At The Dunne Law Offices, we understand that protecting your livelihood is one of your top concerns. Here’s what you need to know about how bankruptcy interacts with your job and your professional future.
Can I Be Fired for Filing Bankruptcy?
No. Federal law protects you.
Under the Bankruptcy Code (11 U.S.C. § 525), your employer—whether public or private—is prohibited from firing you solely because you filed for bankruptcy. You cannot be demoted, denied a raise, or lose your job simply because you sought financial relief.
Will My Employer Be Notified?
In most Chapter 7 and Chapter 13 cases, your employer will not be notified unless:
- Your wages are being garnished (which bankruptcy will stop), or
- You choose to make Chapter 13 plan payments through payroll deduction (optional in many districts).
Even then, these situations don’t reveal the details of your bankruptcy—they simply show that a court order is in place.
Will Bankruptcy Impact Future Employment?
Possibly—but only in limited cases.
While a current employer cannot fire you for filing, private employers are legally allowed to consider your credit history during the hiring process, especially for roles involving money or sensitive information (like finance, accounting, or government work). That said, bankruptcy can sometimes show responsibility—you faced your debt head-on and took action to resolve it.
Tip: If a potential employer brings up your credit, be prepared with an honest explanation and show how you’re working toward financial stability.
Bankruptcy Can Actually Improve Job Performance
Many clients tell us that once their financial stress is lifted, they feel:
- More focused and productive at work
- Less distracted or anxious
- More confident in their personal and professional life
In this way, bankruptcy can be a step toward reclaiming not just your finances, but also your peace of mind and career satisfaction.
Focus on Your Future, Not the Stigma
Bankruptcy does not define you—it frees you.
Whether you’re facing wage garnishment, overwhelming debt, or constant creditor calls, bankruptcy may be the tool you need to move forward. And with the right guidance, you can protect your job, rebuild your credit, and pursue new opportunities without fear.
We’re Here to Help You Navigate It All
At The Dunne Law Offices, we’ve helped thousands of hardworking individuals just like you regain control of their finances while protecting their careers. We’re here to make the process clear, respectful, and empowering.
📞 Call us at (215) 551-7109
💼 Or visit ThePhiladelphiaBankruptcyAttorney.com to schedule your free consultation
Your job is your livelihood. Bankruptcy won’t take that away—it may help you protect it.