Many people who are considering filing Chapter 7 or Chapter 13 bankruptcy are concerned about whether or not their employer will find out about their bankruptcy filing. Usually, employers do not find out about the bankruptcy filing; however, there are a few circumstances in which they may be notified.

If your employer runs a credit check, they will likely find out about your bankruptcy filing. While you are not obligated to give your employer permission to run a credit check, it could potentially affect their decision on offering you the role if you do not allow them to do so (especially if the role is handling finances or something similar).

Your employer may also find out about your bankruptcy filing if you owe your employer money as of the date you filed the bankruptcy case. In the occurrence that you do owe your employer money, they will get notice of your bankruptcy filing just as your other creditors will.

There are also a couple ways that your employer’s payroll department may get notice of the bankruptcy filing. This may happen if you are filing a Chapter 13 bankruptcy and your monthly plan payment is being deducted out of your paycheck. The payroll department would take that amount and send it to the Chapter 13 Trustee. If you believe this will be major issue then the Chapter 13 Trustee’s office may, at their discretion, allow you to make the payment each month instead of having it deducted from your payroll.

Additionally, the payroll department may also get notice of the bankruptcy filing if your wages are being garnished by a creditor. This notice will allow the payroll department to stop deducting the garnishment from your paycheck.

Other than these few circumstances, typically your employer will not find out if you file a bankruptcy.