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Tricky situation. Insight is MUCH appreciated!

Tricky situation. Insight is MUCH appreciated!

Hello all!


First time poster here. I'm considering filing Chapter 7 (interviewed first Attorney yesterday) and would like some insight.


Amongst all my debts, $16.5k (credit card) of my total debt is currently held at my local credit union........where I work. The Attorney recommended that I include and leave the debt into the BK as it is one of the largest debts and payments ($500/mo) I have but I'm a little uneasy about it and have considered reaffirming it (what if I lost my job even after reaffirming it?). Reaffirming the debt will not gain me access to the credit line again, I would simply be paying to save face. I'd hate for this to turn into a termination due to the loss I am causing. Job performance isn't an issue all my goals and quotas are met monthly, my attendance is excellent. 


Has anyone been in this situation? If so, what was the outcome? I know outcomes can be different.


I have read that an employer can't terminate you because you filed BK, but can terminate you based on XYZ without saying it was due to the BK.

Message 1 of 4
Community Leader
Super Contributor

Re: Tricky situation. Insight is MUCH appreciated!

Welcome @IdRatherBeOnTheBeach 

"Under the law, no employer, government or private, may terminate your employment solely because:

  • you have filed for bankruptcy,
  • you were insolvent before you received a discharge in bankruptcy, or
  • you have not paid a debt which was discharged in bankruptcy or will be discharged in a pending bankruptcy.

Your non-filing spouse's job is also protected -- the law specifically provides that the prohibition extends to people who are associated with someone who has filed for bankruptcy." 

What are you referring to reaffirmation? Credit cards you have are your CU's cards that you work at?

Homeowner Sept 2020. 2021 Explorer ST Chase 3.1%. Sharing my rebuild after BK from learning here. Started 540's. FICO 9 801 as of 05/03/2023. I stayed around to pay it forward for those who helped me back then.

Message 2 of 4

Re: Tricky situation. Insight is MUCH appreciated!

Hello @FireMedic1 !


Yes, the $16.5k is a credit card debt that is owed to my employer (a credit union). 

Message 3 of 4
Valued Contributor

Re: Tricky situation. Insight is MUCH appreciated!



Welcome to the forum, and I love your username.


You can not be terminated from your position because you are declaring bankruptcy. You can only be terminated if you have poor work performance, work in a right to work state, or if you lose your bond due to the bankruptcy, and having that bond is required for your position. You would really need to discuss that with your attorney.  I honestly don't see this as an issue in my humble opinion.


I'm pretty sure that your employer has procedures in place on this.  I would be transparent with your supervisor and HR on this. 

Hang in there. Life will get better!



Message 4 of 4
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