article thumbnail

Who Can Declare Chapter 7 Bankruptcy?

Sawin & Shea

If you’re struggling with overwhelming debts, Chapter 7 bankruptcy could be your best option. Chapter 7 is the most common form of bankruptcy for individuals and families, and it allows you to discharge many of your unsecured debts within only a few months. What is Chapter 7 Bankruptcy?

article thumbnail

How Does Bankruptcy Affect Your Job and Future Credit?

Sawin & Shea

Chapter 7 bankruptcy , or liquidation bankruptcy, allows you to discharge all or most of your debt. Under Chapter 7, most people can keep their home and car, if desired, and receive automatic court protection from creditors. Chapter 7 bankruptcy also stops lawsuits and wage garnishments.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Bankruptcy and Your Job

Sawin & Shea

Code § 525 – Protection against discriminatory treatment) it is illegal to fire someone simply because they have filed for bankruptcy. The bankruptcy would cause an automatic stay, preventing creditors from continuing to attempt to collect debts while you continue with your case. What about potential future employers?

article thumbnail

What Happens If I Get a Job After Filing Chapter 7?

Sawin & Shea

In this blog, we take a close look at ways Chapter 7 bankruptcy affects future or current employment. If you have additional questions, we encourage you to read our online articles about filing bankruptcy. What Is Chapter 7 Bankruptcy? Chapter 7 is often referred to as liquidation bankruptcy.

article thumbnail

Will a Bankruptcy Trustee Contact My Employer?

Sawin & Shea

And if they search your credit history, they’ll also likely spot your bankruptcy filing. A Chapter 7 bankruptcy remains on your credit history for ten years, and a Chapter 13 bankruptcy will stay on your credit history for seven years. Public or government employers may not.

article thumbnail

How Does Bankruptcy Affect Your Job and Future Credit? 

Sawin & Shea

For example, if you have been having your wages garnished to pay back a persistent creditor, your employer would be aware that this is no longer necessary since you are in the process of Chapter 7 or Chapter 13 bankruptcy. Can I be denied employment because of bankruptcy? Bankruptcy is not against the law.

article thumbnail

Will bankruptcy hurt my future career?

Roths Child Law

Bankruptcy and your current job. It is safe to note that you cannot lose your job by virtue of declaring bankruptcy. Your employer (private or government) cannot refer to your decision to file bankruptcy as the sole reason for terminating or changing your employment terms.