Will My Employer Find Out About My Bankruptcy?
Filing for bankruptcy is a difficult decision to make and the consequences can be far-reaching. One of the main questions that arises when filing for bankruptcy is whether or not your employer will find out about it. The answer to this question is complex, as it depends on various factors such as what type of bankruptcy you filed and your relationship with your employer.
When filing for Chapter 7 bankruptcy, creditors receive notification from the federal court where the filing was made, which may include an employer if they are listed as a creditor. However, employers typically do not become involved in Chapter 13 bankruptcies unless payments are being made directly to them through the plan. In some cases, employers may learn of a bankruptcy filing through other means; if someone’s wages were garnished due to a debt before they declared bankruptcy, that same employer might be notified if they file.
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