Will I Lose My Job If I File for Bankruptcy?
No government employer may deny employment to or terminate the employment of an individual solely because he or she has filed for bankruptcy. No private employer may terminate the employment of an individual solely because he or she has filed for bankruptcy. No private employer may discriminate with respect to employment against an individual solely because he or she has filed for bankruptcy.
In a Chapter 7 bankruptcy, your employer will not receive notice you have filed for bankruptcy provided you do not owe your employer any money. In a Chapter 13 bankruptcy your employer will likely receive a pay order from your bankruptcy judge directing your payroll to deduct funds from your pay to make Plan payments to your creditors. For an explanation of Chapter 7 and Chapter 13 bankruptcies see my article entitled, “The Difference Between Chapter 7 and Chapter 13, and Which One Is Right For You.”
There are a number of professional licenses in which the regulatory agency asks if you have ever filed for bankruptcy. If you answer untruthfully your professional license could later be revoked. It is better to disclose having filed for bankruptcy. The information itself is less damaging than the failure to disclose information you are required to disclose.
Generally you are not required to disclose a bankruptcy filing which occurs after you already have the professional license. I have represented many professionals such as real estate agents, mortgage brokers, lawyers, doctors, accountants, etc. None of my clients have ever lost their license as a result of filing for bankruptcy.
The above information is a general overview and is not intended to be used as legal advice. If you are considering filing for bankruptcy, the best thing to do is call our office at 248-557-3645 and schedule a free consultation so you can receive advice which is tailored to your specific circumstances.
By: Michael Benkstein, Esq.
Managing Attorney, Bankruptcy Department
The Law Offices of Joumana Kayrouz, PLLC
1000 Town Center
Southfield, MI 48075