Gurnee Bankruptcy Attorney On Whether Your Employer Will Learn Of Your Bankruptcy

Typically, in a Chapter 7 case your employer does not need to know about your bankruptcy case states Gurnee bankruptcy attorney.  The exception would be if you were currently being garnished by a creditor.  In that case, your employer does need to know about your bankruptcy case and you want them to know about your bankruptcy case so you can stop the garnishment.  In those cases, I would typically fax or e-mail an Automatic Stay.  An Automatic Stay is the proof that your case has been filed and the creditor cannot collect upon you anymore.  It also advises your employer to make no further deductions based on the fact that you file for bankruptcy. 

In a Chapter 13 bankruptcy case, your employer is going to know about your bankruptcy filing because you are going to be on payroll control.  Payroll control is where the amount you owe your trustee per month comes out of your wages directly from your employer.  If you are paid every two weeks, then you will pay every two weeks according to the schedule.  If you are paid once a month, then your employer will deduct once a month and pay the trustee. 

Your creditors will receive bankruptcy notice.  Your employer will need to know about your bankruptcy case to either stop the garnishment or to institute payroll control.  Other than those two situations, your employer does not need to know about your bankruptcy filing and you do not need to voluntarily tell them about your bankruptcy filing.

 

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