How does bankruptcy affect your employment?

On Behalf of | Nov 26, 2024 | Bankruptcy |

Filing for bankruptcy can feel like a heavy burden, especially regarding your job. Many employees worry about losing their current position or finding new work. But bankruptcy does not have to spell doom for your career. In North Carolina, laws protect your employee and job seeker rights.

Can you lose your job because of bankruptcy?

The short answer is no. Federal law protects you from discrimination if you are undergoing bankruptcy. Employers cannot fire, demote or reduce your pay solely because you filed for bankruptcy. This law applies to both private and public sector jobs in North Carolina. However, it is important to note:

  • Employers can still fire you for other reasons, like poor performance
  • The law does not require employers to hire you if you have filed for bankruptcy
  • Protection does not extend to independent contractors or temporary workers

If you believe you have faced discrimination due to bankruptcy, consult an attorney about your rights under federal and North Carolina law.

How should you handle job applications after bankruptcy?

When applying for jobs post-bankruptcy, honesty is crucial. Here are some tips:

  • Answer truthfully if asked about bankruptcy on applications
  • Focus on your skills and qualifications
  • Be prepared to explain your financial situation if it comes up in interviews
  • Present the progress to improving your finances

Remember, many employers understand that financial hardships happen. Your skills and work ethic are often more important than past financial struggles.

What steps can you take to protect your career?

Bankruptcy can be a complex process with lasting effects on your professional life. While federal and North Carolina laws offer some protections, navigating the aftermath requires careful planning. An attorney familiar with bankruptcy law can help you make informed decisions about your career path. They can also advise you on addressing potential challenges in your current or future employment situations.

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