Will My Employer Know About My Chapter 13?

This video talks about your employer as it relates to your Chapter 13 bankruptcy filing.

Jesse Barrientes: Well, Dave, what happens – you’d mentioned before about payroll control where the money is coming out. If I didn’t do payroll control, would my employer find out? Obviously if I’m doing payroll control, they’re going to know. But if I didn’t want to do that?

David Siegel: Well, your employer only needs to find out if you are either on payroll control or if there’s a garnishment pending and therefore we need to send proof of your Chapter 13 bankruptcy filing to your employer to stop the garnishment. Otherwise your employer does not need to know. Your neighbors don’t need to know. Friends don’t need to know. You can kind of keep this covert. The only way someone would know is if they are either your employer and we need to stop a garnishment, they are a creditor in your case and they have to receive notice or three, they are a nosy neighbor, they go down to the bankruptcy court and type into your name into the database which is not highly likely. So for all practical purposes, you are going to know about your bankruptcy but nobody else is.

Jesse Barrientes: So I have some measure of confidentiality even though it’s a matter of public record.

David Siegel: You do. But also you need to way, too, as a debtor let’s say someone needs to know. Let’s say you have a friend who let you money and they have been listed on your bankruptcy petition. You have to weigh the benefit of getting out of debt or getting into this reorganization plan versus not having that person know about your bankruptcy. This is federal law. This is your right to reorganize. I wouldn’t be so concerned about everybody knowing about it. Be concerned about what kind of relief you are going to get under this Chapter.

Jesse Barrientes: But I have to list everything, right? So let’s say I owe my friend Dan $500 in my friend Mark $1000.

David Siegel: Yes, you need to list everybody you owe money to, even a family member, even a friend.

Jesse Barrientes: Even if it’s not in writing.

David Siegel: Even if it’s not in writing.

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