Fong Law Group

Will Bankruptcy Affect My Job or Future Employment?

If you want to file for bankruptcy, you might be concerned about how it could impact your career. Bankruptcy will sometimes have a negative consequence on your future employment, depending on where you apply for a position. There are some employers that may interpret it as evidence that you're disorganized or bad with money, although this isn't always the situation.

It is essential to understand your responsibilities, and which employees are most prone to be influenced by a bankruptcy case, and which companies are likely to find out about it.

What Impact will Bankruptcy Have on Your Job and Career?

There are several factors to keep in mind before declaring bankruptcy. One of the most crucial concerns you must address is how bankruptcy can affect your work or career.

Bankruptcy can sometimes have an impact on some kinds of jobs vs others. Bankruptcy can influence employment if you operate in the finance industry, including banks, or if you serve in a role where you manage money.

Bankruptcy and Employment

When you declare bankruptcy, most jobs are unaffected. However, bankruptcy may have serious effects on some kinds of jobs, so it's a good idea to verify first with Fong Law Group.

A bankruptcy history may result in dismissal, suspension, or other complications in a few designations such as the ones mentioned. Sometimes you won't be able to join recognized companies in some cases.

If you operate in one of the following fields, you need to see if bankruptcy may affect your job:

• Armed Force
• if you work in a bank
• Accountants, mortgage lenders, stock traders, and financial advisors are examples of financial services.
• Medicine, like a GP and dentist
• A realtor or a property manager

Is it Possible to Lose Your Employment if You File for Bankruptcy?

If you have to file bankruptcy, the employer cannot fire you, suspend you, or even take any other action towards you; your employer is prohibited from targeting you. Your boss, on the other hand, may terminate or penalize you if they believe you acquired the position in an irresponsible manner and that it is affecting your job.

It may be difficult to prove that you were unlawfully fired if the company suspends you after finding the bankruptcy but claims you were fired due to poor job performance.

You may consult Fong Law Group, in Monterey Park California and surrounding areas for assistance, and we can guide you. 

The Impact of Bankruptcy on Career Seekers

Private businesses are not bound by the same rules, and people discover that possessing a bankruptcy on the record haunts them.

Bankruptcy and Job

When applying for some positions, a credit check is performed by private companies. The credit history will inform the employer of the bankruptcy. Those seeking employment that might include the handling of finances, like bookkeeping, budgeting, payroll, etc., can face issues as a result of their bankruptcy filing.

While a company wants your consent to perform a credit report, if you decline, they may avoid hiring you. If you're asked for this permission, think about being open about what the company will see in the file. Most employers are sympathetic about bankruptcies, and hard times, especially over the last two years since the epidemic, so it is better to be honest than try to hide it.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

When the IRS Speaks, Retirees Need to Listen

“Workers aren’t the only ones who need to double-check that they’re withholding sufficient taxes. The IRS is warning retirees to ensure they're paying enough federal income tax.”

The IRS embarked on a big awareness campaign since the summer, telling taxpayers they should review and update their withholding numbers at work to ensure that they are paying enough federal income tax. But they’re not the only ones who should be checking their numbers, reports CNBC in the article “The IRS is warning retirees of this impending surprise tax.” Retirees who fail to update withholding from pensions or annuities may be in for a surprise, and it won’t be a good one.

It’s easier to say people should do this, than for them to do it, however.

Once people leave the workplace, they start drawing down income from several different sources. That usually means Social Security, IRAs, pensions and annuities.

While they were working, they didn’t have to think about income taxes, unless they were self-employed. Their payroll company or HR department took care of that.

Now, they must pay estimated taxes every quarter to the IRS.

There are two issues: making sure you remember to pay the tax on a timely basis and making sure that you pay the correct account. Some accounting firms send their clients reminders.  However, that doesn’t always do the job.

How can you make this easier?

There are new withholding tables from the IRS. Speak with your accountant. Make sure you have enough money set aside for quarterly tax payments.

If you’re single and your AGI (Adjusted Gross Income) plus nontaxable interest and half of your Social Security benefits are more than $34,000 (or $44,000, if you’re married), as much as 85% of your Social Security benefits could be taxed. If that seems like a lot, you’re right.

One alternative: use the IRS Form W-4V to withhold a flat rate from each check. Depending on your situation, you can withhold 7%, 10%, 12% or 22%.

If pension or annuity payments are an income source, you can also have taxes withheld from your income, using IRS Form W-4P, and chose the number of allowances you want to claim.

Work with your accountant to get a clear picture of your tax liability and do that now. If you want to avoid a nasty tax surprise in the spring, get it all done well before the end of 2018. You must know what you will need to pay. Especially for new retirees, it’s not easy to figure it out.

Reference: CNBC (Sep. 12, 2018) “The IRS is warning retirees of this impending surprise tax”