By: Darrell Castle

Your employer can NOT fire you because you filed for bankruptcy.

If you’re having nightmares of Donald Trump walking into your work space and bellowing, “YOU’RE FIRED!,” then you’ll enjoy what I’m about to say.

As a bankruptcy attorney, my desire is to see debt-struggling people become debt-free people and enjoy the fresh start that comes along with the title. However, I come across many roadblocks while driving towards that goal.


Often, those roadblocks are misconceptions people have about bankruptcy and mistaken effects it will have on their lives. These are typically misconceptions that friends, family members or society has ingrained in them. For example, “Someone told me my boss can fire me if I file for bankruptcy.”

Here’s why you shouldn’t worry about that.

The law dictates that employers can’t fire you because you filed for bankruptcy. Additionally, your employer can’t reduce your salary, demote you or remove responsibilities either.

Unless your wages are being garnished – which your employer would be completely aware of – then your employer may not even know you filed for bankruptcy. But if you file for bankruptcy to stop the wage garnishment, then your employer will be notified. And depending on your employer, he or she may welcome the bankruptcy as a helpful financial tool knowing the situation you’re in.

Your employer may also know if you file for Chapter 13 bankruptcy and your plan includes a payroll deduction for you payment. But what we’ve found throughout the years is that the employer doesn’t care and has or had many other employees with the same problem.

So stop worrying about losing your job. Instead, focus on loosening that tight grip those missed payments and the resulting debt has on you and the stress coupled with it.

By filing for bankruptcy, you can discharge the dischargeable debt through a Chapter 7, or you can lump the debt into an AFFORDABLE 3-5 year repayment plan through a Chapter 13. Each chapter comes with its own qualifications and benefits and which one is best for you is dependent on your unique situation.

If you’re struggling financially and want to talk to someone experienced about your options – like whether or not bankruptcy is right for you, and if so then which chapter is the best fit – then our FREE financial consultation is perfect and something to strongly consider.

You may not want to file for bankruptcy because you’re scared of what people may think or you just honestly don’t feel it’s right for you. But I bet you aren’t fully aware of all the benefits. And by scheduling an appointment, the very least you’ll get is a complete professional look at your finances and where you really stand – for free.

Call (901) 327-2100 today to schedule your appointment. Or you can fill out one of the contact forms on this page to have someone from our office contact YOU.

Darrell Castle & Associates has received multiple Client Distinction Awards from Martindale-Hubbel for client satisfaction. You’re in good hands here.