Get the most out of debt management. Help yourself by filling out the form on the right to be contacted by a professional debt counselor.

Having debt is a very stressful time in a person’s life. It can have a negative effect on so many things life, including employment. Individuals are worried about their privacy and if their employer is aware of their financial problems. They are concerned about how much their money difficulties can affect their employment.

Filing for Bankruptcy

If there is no way out of their financial situation, some people are forced into filing for bankruptcy. In most cases, an employer will not be notified if an employee files for Chapter 7 or Chapter 13 bankruptcy. However, the payroll division could be contacted if the employee’s income deductions need to be adjusted. Sometimes, the court will require an individual to make payments be made to certain creditors; therefore, the payments might need to be made through payroll deductions.

The consumers who have filed for bankruptcy can be searched at the courthouse by entering a name and social security number. However, very few employers will ever look up the financial records of their employees. If an employer does find out that one of their employees has filed for bankruptcy, they normally will not fire the employee. In fact, there is a section listed in the United States Bankruptcy Code that forbids the firing of employees due to bankruptcy. In fact, some employers will be relieved that an employee has their financial problems behind them, so they can concentrate more on their job and will not be receiving harassing calls from creditors.

Job Performance

Debt can cause significant anxiety and tension in a person’s life. They can’t eat, they can’t sleep and they have trouble concentrating at work. Individuals need to try their best to keep their financial problems from hindering their work performance. According to the Fair Credit Reporting Act, employers do have the right to review the credit history of their employees. If an employer suddenly notices an employee’s job performance declining, they might suspect debt problems and decide to look up the credit history of the individual. If the employer notices a bad credit rating, they could decide that money problems were the reason for their poor performance at work and decide to dismiss the employee from the job.

Getting Hired for a Job

If an individual is having trouble paying their bills, they are in desperate need of a job. There are many employers who like to check the credit history before hiring a new employee. Employers want to make sure that they employee is responsible before they are offered a position with the company. Therefore, high credit card balances, delinquent accounts and repossessions could cost a person a job. Before looking for employment, individuals should try to find a debt management plan to reduce their debts.

Harassment Calls at Work

Individuals need to inform their creditors not to call them at work. Many of them will respect the consumer’s privacy. If a person’s accounts have been turned over to a debt collector, the Fair Debt Collection Practices Act forbids debt agencies from calling an individual at work if they have been asked by the consumer not to call them while they are on the job.

Lawsuits

If an individual has been involved in a lawsuit that requires wage deductions, their employer will be notified so that the money can be taken out of the paycheck. If an employee has many wage deductions, they can lose their job. However, they cannot be dismissed because of only one wage garnishment.

Getting Out of Debt

It is wise for a person to do their best to get out of debt, so that their financial problems will not hurt their employment. There are several things that an individual can do to get out of debt:

Having debt is very personal; therefore, individuals want to do their best to make sure that it does not affect their employment. In most instances, debt will not have an effect on the job. Individuals just need to come up with a debt management plan and make every effort to resolve their debt problems before it can damage their career.