How to Protect Your Job when Filing for Bankruptcy
Don't tell your boss you're filing for bankruptcy., Watch who you tell at work., Talk to your attorney from home., Know when to give your employer advance notice.
Step-by-Step Guide
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Step 1: Don't tell your boss you're filing for bankruptcy.
Particularly if you're filing for Chapter 7 bankruptcy, there's little to no chance your employer will even find out that you're filing for bankruptcy – unless you tell them.This means that if you have to take any time off from work to handle your bankruptcy, for example to meet with your attorney or attend a hearing, you'll have to come up with some other reason to excuse your absence.
You don't have to lie, but you can be vague.
If pressed for details, you can simply state that it's personal, not work-related, and that you'd rather not go into it.
If your boss insists on a specific reason, you'll have to decide what to do.
Use your best judgement to determine whether disclosing your bankruptcy to your boss is the right thing for you to do. -
Step 2: Watch who you tell at work.
You may feel close to some of your coworkers, and it's natural to want to talk to them about important things that are going on in your life.
However, proceed with caution when it comes to your bankruptcy if you're concerned they might tell higher-ups about it.It can be difficult to avoid talking about your bankruptcy, particularly if you have close friends at work who you normally spend time with outside the workplace.
Keep in mind that if your boss is to know, it's better to hear about it from you than from someone else, because that way you can control the information your boss receives.
If someone else talks about it, on the other hand, they may make it sound like a bigger deal than it is. , The workplace isn't the best place to have a phone conversation with your attorney anyway, because of the risk that others could overhear.
This is particularly true if you're trying to keep your bankruptcy secret from your employer.Overhearing half a conversation is a recipe for disaster if the person who happens to overhear is also someone who loves to gossip.
Waiting until after work to talk to your attorney also enables you to have undivided attention on the conversation, which can be crucial to understanding your bankruptcy case.
Another option if you need to reach your attorney during the workday is to send an email.
Make sure you use a private email account on your own device, though, not a work computer or a work email that might be monitored. , If you're filing for Chapter 13 bankruptcy, there's a good chance your employer is going to find out about your case eventually.
If payments on your reorganization plan are taken out of your check, your employer will get a notice to adjust the payroll.In that situation, it's generally better for you to tell your employer first, so they hear it from you rather than from the court.
Getting an unexpected notice can serve as an invitation for your employer to think the worst, especially if your employer gets the impression that you haven't mentioned it out of fear or shame.
Not all districts require these orders, however.
Find out if one will be entered in your case before you talk to your employer about it. -
Step 3: Talk to your attorney from home.
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Step 4: Know when to give your employer advance notice.
Detailed Guide
Particularly if you're filing for Chapter 7 bankruptcy, there's little to no chance your employer will even find out that you're filing for bankruptcy – unless you tell them.This means that if you have to take any time off from work to handle your bankruptcy, for example to meet with your attorney or attend a hearing, you'll have to come up with some other reason to excuse your absence.
You don't have to lie, but you can be vague.
If pressed for details, you can simply state that it's personal, not work-related, and that you'd rather not go into it.
If your boss insists on a specific reason, you'll have to decide what to do.
Use your best judgement to determine whether disclosing your bankruptcy to your boss is the right thing for you to do.
You may feel close to some of your coworkers, and it's natural to want to talk to them about important things that are going on in your life.
However, proceed with caution when it comes to your bankruptcy if you're concerned they might tell higher-ups about it.It can be difficult to avoid talking about your bankruptcy, particularly if you have close friends at work who you normally spend time with outside the workplace.
Keep in mind that if your boss is to know, it's better to hear about it from you than from someone else, because that way you can control the information your boss receives.
If someone else talks about it, on the other hand, they may make it sound like a bigger deal than it is. , The workplace isn't the best place to have a phone conversation with your attorney anyway, because of the risk that others could overhear.
This is particularly true if you're trying to keep your bankruptcy secret from your employer.Overhearing half a conversation is a recipe for disaster if the person who happens to overhear is also someone who loves to gossip.
Waiting until after work to talk to your attorney also enables you to have undivided attention on the conversation, which can be crucial to understanding your bankruptcy case.
Another option if you need to reach your attorney during the workday is to send an email.
Make sure you use a private email account on your own device, though, not a work computer or a work email that might be monitored. , If you're filing for Chapter 13 bankruptcy, there's a good chance your employer is going to find out about your case eventually.
If payments on your reorganization plan are taken out of your check, your employer will get a notice to adjust the payroll.In that situation, it's generally better for you to tell your employer first, so they hear it from you rather than from the court.
Getting an unexpected notice can serve as an invitation for your employer to think the worst, especially if your employer gets the impression that you haven't mentioned it out of fear or shame.
Not all districts require these orders, however.
Find out if one will be entered in your case before you talk to your employer about it.
About the Author
Jessica Adams
Creates helpful guides on hobbies to inspire and educate readers.
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