Bankruptcy and Employment in New Jersey

Your job is very important to you, especially if you are the primary caretaker of your family. Questions regarding how filing for bankruptcy can affect your job as well as future employment may be heavily weighing on your mind.

Thankfully, there are answers that can be provided by an experienced bankruptcy attorney who can help you understand the relationship between bankruptcy and employment in New Jersey.

How Bankruptcy Affects Current Employment

As there are laws that govern bankruptcy protection, there are also laws that protect a person from losing their job because of bankruptcy. A private employer cannot terminate a person’s employment based on the fact that they filed for bankruptcy. Similarly, government employers cannot terminate a person’s employment based on their bankruptcy filing.

In addition to not terminating the individual’s employment, private and government employers cannot use bankruptcy filing as a way to affect other areas of the claimant’s employment. For example, an employer cannot use a bankruptcy filing as a basis for cutting a person’s pay or demoting them. For more information about bankruptcy and employment in New Jersey impact each other, contact a seasoned lawyer.

Finding a New Job in New Jersey

A person may be thinking about their prospects of employment after they file bankruptcy. There are laws in place that protect claimants in some future employment prospects from discrimination based on a bankruptcy filing. When someone is being considered for a job by a government employer, that employer cannot use a bankruptcy filing in determining whether to hire someone.

However, if someone is being considered for a job by a private employer, it is possible a private employer could use a bankruptcy filing as a reason not to hire them, especially for jobs handling money, such as an accounting or payroll position. However, just because a future private employer can consider bankruptcy does not mean that they will use it as a means to deny employment.

Will an Employer Find Out About an Employee Filing for Bankruptcy?

While an employer may never find out about an employee filing for bankruptcy, there are some situations where an employer may become aware. One situation is when someone files a chapter 13 bankruptcy, which involves a payment plan of their debt. A judge may require their payments in a chapter 13 plan to be regularly deducted by an employer from their wages.

If a person files for chapter 7 bankruptcy, their creditors are normally the only ones notified about a bankruptcy filing. This means their current employer may never find out about a bankruptcy filing. However, a future employer may find out about a bankruptcy filing if they perform a credit check.

Another way an employer could find about an employee’s bankruptcy is through public records since bankruptcy records are available to the public. However, there are usually very few reasons why an employer would even need to search these records to find out this information. A New Jersey bankruptcy lawyer can talk with a person about their specific employment situation and answer questions regarding employment and bankruptcy in New Jersey.

Contact an Experienced Attorney About Bankruptcy and Employment in New Jersey

Recognizing your rights and protections under the law relating to your current and future employment can be one of the most important things to consider in making the decision to file bankruptcy. While your job may be very important to you, the decision to move forward with tackling your debt can also be significant to you.

An experienced New Jersey bankruptcy lawyer can answer your questions relating to bankruptcy and employment in New Jersey to help paint a clearer picture for you and your employment situation. Call today to learn more.