Will Filing For Bankruptcy In Baltimore Affect Federal Employment?

Will Filing For Bankruptcy In Baltimore Affect Federal Employment?Are you a federal employee living in Baltimore and facing financial challenges? In some cases, the best action to take is to file for bankruptcy. Still, you may be wondering how this could affect your federal employment, especially security clearance. Let’s find out.
Get back on track financially. Speak with a Baltimore bankruptcy attorney about the best options for you. Contact Sirody & Associates for a free consultation. Or call (410) 415-0445.
Can They Fire You?
Filing for bankruptcy is not cause for dismissal. In fact, it’s illegal to terminate employment on the basis of bankruptcy alone. It doesn’t matter what agency you work for – SSA, DOD, CIA, NSA, or any other department – no employer can fire you just because you file for bankruptcy. However, other circumstances could affect your employment.
If you’ve hit hard times due to unexpected expenses, large medical bills, divorce, or overspending with credit cards – none of these are legitimate reasons for you to lose your job. On the other hand, if you were involved in criminal activity or job negligence, then your federal employment may be at risk.
As you can see, bankruptcy itself has nothing to do with keeping your job. In fact, taking action to resolve your financial situation may even help you maintain job stability.
Keep Your Security Clearance
One of the biggest concerns facing federal employees in Baltimore filing for bankruptcy is security clearance. In nearly all cases, security clearance is not affected by bankruptcy – but there’s a catch.
The best thing to do is to speak with your employer before filing for bankruptcy. While this may be embarrassing, don’t worry. It’s far better to communicate things clearly as this transmits trustworthiness. If your employer finds out later – especially from another source – they may feel you are trying to hide something.
Filing For Bankruptcy May Benefit Security Clearance
Surprisingly, filing for bankruptcy may even help you keep your security clearance because getting your finances in order will enable you to focus on your job. Let’s say you have overwhelming debt. If you don’t take steps to resolve the situation, things will probably continue to get worse. The next thing you know, you’ll have creditors calling and sending letters – and you’ll be under tremendous pressure.
Even though you are not required to tell your employer about bankruptcy, they may find out anyway. For example, in some credit default situations, payment may automatically be deducted from your wages (this is called wage garnishment). If this happens, your employer will be aware of the situation.
The Best Strategy
The best way to keep your job and maintain your security clearance is to take steps that restore your financial stability. Also, be upfront with your employer about your situation. Filing for bankruptcy is a legitimate, legal method to get rid of debt problems.
For more help, your read our In-Depth Guide To Filing For Bankruptcy In Maryland.
Resolve your debt issues and restore your financial health. Speak with a Baltimore bankruptcy attorney today. Contact Sirody & Associates for a free consultation. Or call (410) 415-0445.