How Can Filing for Chapter 13 Bankruptcy Impact Your Job?

If you made mistakes as a teenager that could potentially hurt your career as an adult, learn from my family's experience on how to help with that situation.

How Can Filing for Chapter 13 Bankruptcy Impact Your Job?

23 November 2022
 Categories: Law, Blog


Do you plan to file for Chapter 13 bankruptcy in the near future? If so, you may be wondering how it might affect your job. If you've never filed before, it can be difficult to know what the future looks like.

If you are on the fence about filing because you don't know how bankruptcy could impact your ability to make a living, there are a few things you need to know.

Discrimination Based on Bankruptcy Status Is Illegal

While you may hope that your employer will not discriminate against you for filing for Chapter 13 bankruptcy, there is still potential for some employers to treat employees who have filed for bankruptcy differently. For example, they may be more inclined to terminate your employment or refuse you a promotion.

To protect yourself from possible discrimination, it is important that you become familiar with federal and state laws governing the protection of employees who have filed for bankruptcy.

Your Bankruptcy Payment Plan Can Impact Your Job

If you are filing for Chapter 13 bankruptcy, you will be required to create a payment plan that outlines how much of your debt you will pay each month. It is important to remember that the amount of money you have to contribute towards your debt each month could impact your ability to take on additional employment or even maintain the job you currently have.

If you are employed, you will need to take into account your monthly expenses before creating a payment plan. This will ensure that you can still afford your living expenses and maintain a consistent job.

Your Credit Score and Employment History Could Be Affected

Bankruptcy can have a negative impact on both your credit score and employment history. Your potential employer will be able to see your bankruptcy on your record, for instance.

Bankruptcy Could Have a Positive Impact on Your Future

It is important to remember that filing for Chapter 13 bankruptcy does not necessarily have to have a negative impact on your employment prospects. In fact, it could open up the door for more opportunities. For instance, if you are able to successfully manage all of your debts, creditors may be more inclined to hire you. Additionally, filing for bankruptcy can give you a fresh start and allow you to rebuild your credit score quickly.

Talk to a Bankruptcy Attorney to Learn More

Ultimately, whether or not filing for Chapter 13 bankruptcy will have a positive or negative impact on your job is dependent on several factors. To learn more about how it could affect your employment prospects, it is best to speak with an experienced bankruptcy attorney. They can provide you with advice and guidance so that you can make the best decisions for your future. 

About Me
teenage mistakes that could ruin adult careers

My son has had the goal of becoming an attorney since he was about 14 years old. Unfortunately, he made a very poor decision with a group of friends when he was 16 that put his future plans in jeopardy. When my son told me what had happened and we received the citation, I knew that we had to hire an attorney to help him through this. I could not see how a small incident such as this should hurt his chances for success when he is an adult. Thankfully, things worked out for us, but it was a long journey which you can follow on our blog.