Can Teachers be Fired for Filing Bankruptcy?
Downward pressure on teachers’ wages is pushing many educators into bankruptcy. While a teacher cannot be fired from their job because of bankruptcy, there are some aspects of a teacher’s job that can impact their bankruptcy case. Let’s take a look at the most important aspect of a teacher’s job that could impact their bankruptcy case — how they are paid.
Many teachers are paid for only 9 or 10 months of the year. Because of this unusual pay schedule, the way that the Means Test calculates a bankruptcy debtor’s current monthly income could have an impact on the teacher’s bankruptcy case.
Current monthly income is calculated by looking at the debtor’s last six months of income, averaging it and then multiplying the average by 12. This figure will become the bankruptcy debtor’s current monthly income. This method of calculation is fine if the teacher is paid the same amount for 12 months; but if they aren’t it could lead to an inflation of the teacher’s monthly income. So how does a teacher remedy this issue before filing bankruptcy? One strategy is to delay filing bankruptcy until September, October or November depending on when the school year ends and begins. The teacher can also work with their bankruptcy attorney to challenge the current monthly income calculation as inaccurate. The teacher’s current circumstances will dictate which strategy is best.
If the debtor is desperate for bankruptcy protection because of lawsuits and wage garnishments filing immediately and challenging the current monthly income figure later might be the best move.
If you are a teacher who is considering bankruptcy, we can help you. If you would like to set up a free consultation feel free to give us a call or fill out our contact form set up a free consultation to see if bankruptcy is right for you.