Bankruptcy and Your Job: What You Need to Know

by: Attorney Noyes

5/1/20241 min read

Navigating bankruptcy can be a challenging process, especially when it comes to understanding how it impacts your employment rights and future. At Noyes & Associates, we aim to highlight this complex issue to help you make informed decisions about your financial future.

1. Employment Rights During Bankruptcy

Filing for bankruptcy generally should not affect your current job or job applications. Federal law prohibits most employers from discriminating against employees or applicants based on bankruptcy status.

2. Bankruptcy and Job Applications

Employers are not allowed to ask about past bankruptcies on job applications for most positions. However, specific jobs, such as those in finance or positions requiring security clearance, may require disclosure.

3. Wage Garnishments and Bankruptcy

One benefit of bankruptcy is the automatic stay, which prevents creditors from continuing or starting wage garnishments. This can provide relief and allow you to focus on your financial recovery.

4. Bankruptcy and Future Employment

While bankruptcy may impact your credit score and could be a consideration for some employers, it is illegal for an employer to fire you solely because you filed for bankruptcy. Most employers are more concerned with your current financial situation and stability.

5. Seeking Legal Advice

Navigating the intersection of bankruptcy and employment law can be complex. Consulting with a bankruptcy attorney can help you understand your rights and options, ensuring you make the best decisions for your financial future.


Bankruptcy can provide individuals with a fresh start, but it's crucial to understand its implications on your employment. At Noyes & Associates, we specialize in guiding clients through bankruptcy, ensuring they know their rights and options at every step.

If you have questions about bankruptcy and its impact on employment, please get in touch with Noyes & Associates. Our experienced team is here to provide the legal advice and support you need to make informed decisions about your financial future.