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Can I Lose My Job if I File for Bankruptcy?


Federal law prohibits employers from firing employees simply because they have filed for bankruptcy. Because of this, employers cannot fire someone if the only reason is that they filed for bankruptcy.

Most people do not realize that putting off bankruptcy can have adverse effects on your job. Some of these effects could be:

  • Wage garnishments-this is where your creditors directly contacts your employer and takes money directly out of your paycheck. Not only is the creditor directly taking your pay, but often times your employer may have garnishment fees.
  • Creditors Harassing you at Work-though it is illegal, many creditors overstep boundaries and call you at work. This will not only upset you but may perhaps upset your employer too.
  • Employer Credit Checks-some employers will run your credit report as part of the hiring process. If you show a large amount of debt, this may make the difference in whether or not you get hired.
  • Debt Related Stress-dealing with creditor calls and harassment takes it toll on people. If you are stressed because of you financial situation, it is very likely that this will carryover into the workplace and affect your job performance.

If you are experiencing financial troubles, contact an Orange County Bankruptcy Attorney at 1st California Law Inc today!

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