Can Bankruptcy Affect My Teaching Job?
According to Section 525 of the Bankruptcy Code, filing bankruptcy cannot affect your teaching job. Section 525 of the Bankruptcy Code is designed to help individuals filing for bankruptcy avoid problems with their jobs. Filing for bankruptcy should not affect your job as a teacher, according to the code.
Public school districts are prohibited from discriminating against individuals who file for bankruptcy, but you can check your employment contract or contact your union to clear up any doubts.
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Function
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The bankruptcy process is designed to help individuals who are financially overburdened and unable to fulfill their debt obligations. The process can provide a fresh start by wiping out most debts or devising a plan to repay them at a feasible rate. The fact that you are a teacher does not affect your ability to file for bankruptcy.
Notification
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You are not required to tell your employer if you file for bankruptcy, and your employer will not know about it unless it is one of your creditors or someone happens to peruse the Legal Notices section of the local newspaper. In rare cases, your employer may be contacted by the bankruptcy trustee or other court official, for reasons associated with your bankruptcy. If you apply for a new teaching job, it is likely there will be a question on the application about whether you have ever filed for bankruptcy. The bankruptcy may be revealed during a background check.
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Bankruptcy Code
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According to Section 525 of the Bankruptcy Code, a government unit cannot "deny employment to, terminate the employment of, or discriminate with respect to employment against" individuals who have a bankruptcy in their credit histories. As a governmental unit, a public school district cannot discriminate against you because you have filed for bankruptcy. Section 525 also provides you with legal protection against revocation, suspension or nonrenewal of your teaching license or credential.
Private Schools
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The Bankruptcy Code provides safeguards if you are a teacher at a private school as well. Section 525(b) states that, "No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor" under the Bankruptcy Act.
Wage Garnishment
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Two types of debt that cannot be discharged if you file for bankruptcy protection can result in the garnishment (withholding) of your wages. Student loans and back taxes are two types of debt that cannot be absolved under any circumstance, even bankruptcy. If your wages should be garnished, the school district in which you teach will have to be notified. Bankruptcy and the possible subsequent wage garnishment cannot legally affect your teaching job, but there may by some resulting negative social response from colleagues and administrators.
Warning
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If you are fired from your teaching job or denied a job based on your bankruptcy filing, the burden of proof lies with you. It may be difficult to prove that your bankruptcy was the sole reason for termination from or denial of a job. Keep records of your accomplishments and accolades from administrators, colleagues and parents if you believe you are being let go based on your credit history.
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References
- The Bankruptcy Site: Will Bankruptcy Affect My Employment?
- Law QA: Can I File for Chapter 7 Bankruptcy as a School Teacher?
- Bankruptcy Law Firms: Can Filing Bankruptcy Affect My Career?
- Cornell University Law School: Bankruptcy Code Section 525
- Loan.com: 3 Types of Debt That May Result in Wage Garnishment
Resources
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