Bank employee fired for filing BK?

[pinchMYpenny]

Hi Everyone,

We are planning on filing chap. 7 in a few months. We are behind on mortgage 3 months, but current on all credit cards $65k balance.

Loss of income, upside down mortgage that we should never gotten approved for, and maxed credit cards (with available credit lines slashed) to pay for stuff because all money goes to mortgage has lead us here.

One of our credit card debts is for the very same bank my spouse works for. Can they fire an employee for being late on the cc? for filing BK? for including that credit card in the discharged debt? Has anyone had this experience? I know they can let an employee go for ANY reason, but has anyone here had personal experience? or work for a financial institution? Spouse has worked for the bank for over 15 years. HELP!

Thank you.

[imoverit]

I worked at a bank when I started missing payments and have many many banking friends who are behind and/or filed and there have been no repercussions. Anything's possible, but I think your spouse would be surprised to see how many co workers are in the same boat. Good luck!

[backtoschool]

If your wife works directly with money, the bankruptcy may affect her employment. It affects current employees less than prospective employees newly applying for jobs, but banks are not a bankruptcy friendly industry.

[OhioFiler]

If your spouse is a valued trusted employee there is nothing to be concerned about.

[HHM]

Although it is "possible", I wouldn't worry about it too much or let it distract you from your financial recovery.

As pointed out, it can be more of an issue for prospective employees. The bank would have significant risk if it fired someone simply for filing BK.

[Flamingo]

It is illegal to be fired for just filing bankruptcy; however, if you have an employment contract with a clause stating you must inform your employer if you file, or there is verbiage in your employee handbook that you sign you have read (usually have to sign an update yearly after initial employment) that if you file you must inform your employer, do so and do not hide the fact. Otherwise, there is no reason to disclose the situation to your employer. If your spouse does, in fact, get fired and he suspects it is due solely to the bankruptcy, consult a labor law attorney.

[kenshirley]

While being removed for filing a BK may well be illegal, try to prove that was the reason for the removal.
Many are looking for work and they will most likely work cheaper too.

[Flamingo]

While being removed for filing a BK may well be illegal, try to prove that was the reason for the removal.
Many are looking for work and they will most likely work cheaper too.

You are correct - it is very difficult to prove especially if layoffs are occuring in one's company or if one is being watched for other infractions on the job (i.e., continually being late, job performance, etc.). However, if one is a stellar employee, no layoffs are occuring, one files for BK and a few weeks later gets let go, one may have a case.

[momisery]

Our bank gives a performance review quarterly now. My review was just in and it was wonderful, so I am hoping that they will not find out. Not sure I would want to tell them, but with all the banks filing you would think this would be a "business decision" like those who are businesses consider it when they file. CIT is filing to dump us the taxpayers debt, and we should fire them then if we are going to have our lives ruined for going BK.