Filing for bankruptcy can be a stressful time for anyone and the last thing you need is to worry about your current employment. This is particularly true if you have filed a Chapter 13 bankruptcy where you have entered into a payment agreement. These agreements continue for a minimum of three years and failure to meet this obligation can result in your petition being dismissed. So what effect does bankruptcy have on your current employment?

For most individuals, bankruptcy should not affect their job security. In other words, no employer has the right to fire you because you have filed for bankruptcy. That doesn’t mean your bankruptcy petition has no effect on your employment. It will, however, mean good management should reduce any long term impact. Bankruptcy is a legal process that involves the bankruptcy court. This means you will need to attend court, and that is always during business hours – and for most people, that is their working hours.

You will need to take time off work to meet with your lawyer to plan your bankruptcy petition. You will most likely need two or three follow-up meetings to complete the process. Once your petition is ready, you will most likely need to attend the court house to sign each page when you file that petition. Finally, you will need to take a significant amount of time away from work to attend a creditors meeting. This takes place about 30 days after your petition is filed and can take the whole day if your petition is complex. At best, you will need to allocate around three hours for this creditors meeting.

If you can plan your time off work, then the impact should be manageable. Some lawyers see clients late in the afternoon or in the early evening. You may be able to arrange a meeting after work, particularly if your workplace is close to your lawyers office. Filing for bankruptcy will have an impact on your employment, however, it is only during the first 6-8 weeks of the process. From that point on you should find there is little impact. Most employers are willing to work with their employees to minimize the effect on both the workplace and the employee.

Related posts:

  1. Can Bankruptcy Affect A Current Or Future Military Career?
  2. Self Employment And Bankruptcy
  3. Employment Is Not A Bankruptcy Barrier
  4. How Bankruptcy Affects Car Repossessions
  5. How Bankruptcy Affects International Movement