Are you planning on filing for bankruptcy, but are unsure of the impact that it will have on your current job or future endeavors? Is it possible to be fired simply because you filed for bankruptcy? This is one of those common myths that many people believe about bankruptcy. All too often it keeps people from resolving their debt because they are too afraid of the potential consequences. You can rest easy knowing that in many situations, bankruptcy cannot affect your employment. For non-government jobs; however, this is not necessarily the case and you should definitely speak with a Virginia Beach bankruptcy lawyer before making any final decisions.


It is not alright for any employer to fire you because you filed for bankruptcy of any kind. This is true of both private and government employers. In addition, they are not allowed to discriminate against you, by doing things like the following:

  • Demoting you to a lower position
  • Minimizing your salary
  • Reducing your level of responsibility because of your financial decision

If there are other factors at play as to why these actions are being taken against you, then your decision to file for bankruptcy cannot be used to protect you. When termination from a job happens soon after filing for bankruptcy, you may very well be able to fight back in a case of illegal discrimination.


For many employees, they may be afraid that their employer will find out about their bankruptcy. Chapter 7 filings are rarely discovered by employers, but with Chapter 13 filings they will find out especially if the bankruptcy judge orders to have your payments taken directly out of your paycheck. If your wages are garnished or a creditor sues you, your employer will definitely know. Many times bankruptcy can put an end to wage garnishment, which your employer will also find out. Bankruptcy can often be seen as a positive and helpful step being taken to resolve debt, which most employers will see as beneficial.

Those that work as a federal employee or member of the military may have to consider security clearance as an issue when dealing with debt. Having a significant amount of unresolved financial issues can be cause for an individual to lose their level of security clearance and potentially their job. It is seen as a threat to confidential information if a federal employee is in a tough financial spot. They are seen as more susceptible to bribery or coercion since they may be more likely to give away intelligence in exchange for money. If the person is pursuing bankruptcy; however, the government may see it as an honest effort to settle their debts and allow them to keep their security clearance.


At the David McCormick Law Group, we started the firm with the goal in mind that we would serve each client with the upmost compassion, understanding and commitment to obtaining positive results. Whether bankruptcy is the best option for you or some other alternative is better, our Virginia Beach bankruptcy lawyers are here to assist you. Offering services in both English and Spanish, we make ourselves available to a wide range of people. Throughout every step of the process, you as the client can rest knowing that you always come first. We have helped over 17,000 clients since our start in 1996, with many of them walking away debt free. Be sure to call our office for your free initial consultation and get $150 off your legal matter today!

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