Bankruptcy does not impact employment

Hard-working Maryland residents might find themselves in overwhelming financial situations for many reasons. Fortunately, federal bankruptcy laws enable individuals to restructure their finances and resume their lives with the ability to financially make ends meet going forward. That includes keeping current employment, but future employment opportunities might suffer a bit due to legitimate background checks.

Bankruptcy Act bans financial discrimination

Federal bankruptcy law says a governmental unit cannot punish a worker who has filed for bankruptcy. Any required and active licenses, permits, charters, franchises or other employment-related conditions must remain in effect. Federal law also says that private employers cannot fire workers who file for bankruptcy. Quite clearly, bankruptcy should not affect a worker’s employment, but that does not always mean the employer agrees.

Some employers bend the rules

No matter what the motivation might be, some employers who learn that workers are going through a bankruptcy filing find excuses to fire that worker. A right-to-work state does not require a reason given when firing a worker, so an employer could simply fire a worker undergoing a bankruptcy without citing a reason. Others might make significant changes to the work environment and essentially sabotage the worker in order to blame poor performance or an apparently valid reason for terminating employment.

Bankruptcy might enhance security clearance

A bankruptcy filing puts an immediate end to all collection activities and can lead to financial freedom for the filer. That, in turn, can improve the security clearance of a worker who no longer has potentially bad finances that might lead to leverage for a security breach. The filing also shows that the worker is taking significant steps to address the situation with a definite exit plan in place via an eventual discharge of debts.

Bankruptcy may allow individuals burdened with debt to get a fresh start. An experienced bankruptcy attorney in the Towson area may review your situation and help you reduce the negative effects of your unfortunate financial situation.