Financial burdens fall on the best of people. Unemployment, sickness, or bad investments are just a few of the reasons why people fall behind on their bills. Getting out of debt is not as easy as getting in debt. Debt consolidation may work for some, but it does not always work for others. Depending on the situation, the best thing that you may be able to do is to file Chapter 13 bankruptcy. This is not a decision to make lightly. You have to understand that this can and will impact you into the future. There are times that you can be discriminated against due to you filing bankruptcy. The bad part about it is that in certain situations it actually may be legal.

Understanding Chapter 13

Chapter 13 bankruptcy is often called wage earners bankruptcy. You are telling the court that you have some resources available, you want to pay your debt, but you need time and help with debt consolidation. If the court agrees to your petition, you will have three to five years to repay your debt. Your bankruptcy order will often waive all of the interest and fees that make debt repayment difficult.

Whose Business Is It?

Your employer will often know more about your financial situation than you think they do. This is especially true if there has been any type of garnishment or withholding coming out of your paycheck. You are not required to report the filing of your bankruptcy with your employer unless it is outlined in your contract, or you owe your employer money. If you owe the employer money, they will be required to be listed as a creditor when you file.

Are You Protected?

Some employers may look upon you filing bankruptcy as a way for you to take control and manage your debt. Other employers may frown upon you filing. The bankruptcy code protects you and forbids your employer from terminating your employment or discriminating against you for filing bankruptcy. While this may be true, there are ways that employers get around it. If an employer has any other grounds for termination, you filing bankruptcy may be the icing on the cake. If you are terminated shortly after your employer finds out that you filed bankruptcy, you may be a victim of discrimination. It may be worth contacting an attorney to explore your options.

When Is Discrimination Legal?

The bankruptcy code only protects your current employment. If future employers perform a credit check as a part of your pre-employment screening and see bankruptcy on your credit report, they can screen you out as a result of this. This is more common in the private sector than it is in the public sector.

Bankruptcy can also keep you from getting a surety bond, obtaining certain types of financing, and qualifying for rental housing. Bankruptcy may still be the best way to solve your financial problems, just know there may be some hurdles to overcome in the future.