Bankruptcy Stops Wage Garnishment The minute a bankruptcy cases filed, an injunction called the automatic stay is issued, which prohibits creditors from trying to collect on debts that were included in the bankruptcy. The Ninth Circuit Court of Appeals has called the automatic stay “one of the most important protections in bankruptcy law.” The automatic stay […]
Bankruptcy and Your Career
Consumers who are facing financial difficulty and considering filing for bankruptcy, are often concerned how the process will affect their career. While there is legislation in place preventing employers from discriminating against individuals who have filed personal bankruptcy, public and private employers are held to different standards. Regardless of whether you work for the government or a private employer, federal law prohibits employers from firing an employee solely because they have decided to seek bankruptcy protection. However, filing for bankruptcy can impact your ability to get a job if you’re currently in the hunt for new employment. Section 525 of the bankruptcy code does not allow governmental employers to deny employment based on a bankruptcy filing, but does not expressly preclude private employers from doing so. Recent case law has held that private employers may consider bankruptcy as a reason for denying employment to a job seeker. Below, you will find numerous articles on the subject of bankruptcy and your career, where issues such as current employment, impact of bankruptcy on credit score and other issues are discussed. If you don’t find what you’re looking for, and have additional questions, we invite you to visit our QA forum and post a question to our membership.
Does a regular paycheck disqualify a consumer from filing for chapter 7 bankruptcy? If you’ve read this blog with any frequency, you’ve undoubtedly seen numerous posts about bankruptcy reform and the means test. Indeed, much has been written about the means test, the vaunted gatekeeper to chapter 7 bankruptcy protection implemented by Congress as part […]
Student loan debt and bankruptcy The topic of student loan debt and bankruptcy: most every bankruptcy and personal finance related website out there has written about it on numerous occasions. However, the rules are worth repeating because it is still an unreasonable area of the law that was created to address the concerns of a […]