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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.