There is no evidence, statistical or otherwise, that job loss is or has been a problem for Atlanta area bankruptcy filers. I have represented Chapter 7 and Chapter 13 debtors in the Atlanta area for almost 30 years and I have filed hundreds of cases, but I cannot think of a single instance where any of my clients lost his or her job because of a bankruptcy filing.
First, it is unlikely that your employer will even know you have filed. Although bankruptcy filing are part of the public record, the only cases I ever see in the news are petitions filed by high profile debtors.
Unless you owe money to your employer, no one at your company will receive notice as a creditor or interested party. If you file Chapter 7, your employer is not involved with your case at all and the odds that your supervisor or co-workers will find out about your Chapter 7 filing are very small.
If you file Chapter 13, your employer – or more accurately the payroll company or your payroll supervisor – will find out about your filing because Chapter 13 cases have to be funded by payroll deduction. If your company uses a payroll service like ADP or Paychex, your direct supervisor will most likely not know since payroll information is generally kept confidential.
Second, bankruptcy filings are extremely common in the Atlanta area and throughout north Georgia. Every year, over 22,000 people filed Chapter 7 or Chapter 13 in Atlanta. Almost 30,000 people filed personal bankruptcy in the northern district of Georgia, which includes Atlanta, Gainesille, Rome and Newnan.
The number of filings each year goes up and down but it generally ranges from about 20,000 to 30,000 filings per year in the Northern District. Employers would have a greatly reduced pool of job applicants if bankruptcy filers were excluded.
I suspect that bankruptcy filings will not impact your employment status for the same reason that bankruptcy filings do not deter credit card companies from extending new credit to recently discharged debtors. After you complete your bankruptcy you are a better credit risk and you are most likely a more stable employee. Bankruptcy eliminates the stress of debt and it ends collection phone calls, lawsuits, and threats of wage garnishment, bank account levy, mortgage foreclosure and vehicle repossession.
There are negatives to bankruptcy to be sure. You will lose access to easy credit for about a year after discharge and some lenders like American Express will not extend credit for several years. However, you should not fear job loss or problems with future employment following your bankruptcy filing.
