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Will
my employer find out I filed bankruptcy?
In a Chapter 7 bankruptcy filing, generally the only way your
employer would find out about your filing is if the employer also
happened to be a creditor of yours.
That is the only situation where notice would be sent to
your employer.
In
a Chapter 13 case, you will be required to make your monthly
Chapter 13 plan payment by payroll deduction, so the payroll
department at your place of employment will receive an order from
the court telling them to withhold the set amount of money
(your plan payment amount) from your paychecks each month
and then remit that money monthly to the bankruptcy trustee.
It is made clear to the employer that this a voluntary
payment being made by you and is not any form of garnishment.
It
is against the law for your employer to punish you or discriminate
against you because of your bankruptcy and, practically speaking,
we have never had a client report any negative treatment from
their employer as a result of their payroll deduction for the
Chapter 13.
NOTICE: This site is not
offering legal advice and nothing on it should be considered to be
legal advice. The information on this site is being offered only
for educational purposes. If you are considering bankruptcy, you
should consult with a licensed attorney who regularly represents
clients in bankruptcy and allow them to review your circumstances
and advise you accordingly.
The Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005 Requires the
following notice:
We are a Debt Relief Agency. We help people file for bankruptcy
relief under the Bankruptcy Code. This web site is not an offer to
provide bankruptcy assistance services to any assisted person as
defined under Section 527(a)(2) of the Bankruptcy Abuse Prevention
and Consumer Protection Act of 2005.
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