Current employer acquired by large company which is creditor in my chp13

[jl37]

Good morning,

I've run into a unique scenario with my current employment due to my Chapter 13. Let me start with I've been working at my current employer for about 28 months, they have been aware of the Chapter 13 bankruptcy for the 7 months I've been in it. To this point there has been no issues due to my filing. The interesting part is our company has been acquired by a giant. We are being moved over with same management and job, pay etc. The kicker is the new employer is a creditor of 1700 in my active Chapter 13. I know the law forbids letting someone go specifically for filing a bankruptcy but in this type of scenario is it any different or am I still protected by the laws. I work in the computer industry doing network security and my new employer is not a financial tservices company. My current employer does background and credit checks every 2 years and happened to run another on me 1 month back so from what I've been told they are using what they have on us for any type of checks. I know I'm paranoid to begin with and that within 2 weeks of the close of the deal most likely I would know if my credit were an issue but I'm wondering if anyone out there knows if being acquired by a listed creditor is a conflict of interest to the point where a loophole would exist to let an employee go. They were being paid ontime every month until I filed where obviously all creditors had to be added and stopped paying.

Anyway, if anyone has had a similar situation or knows what the law would be with regards to this I would truly appreciate the input.

My lawyer seemed to think they could not fire me as the debt was not acquired while working for the new owner.

Thanks in advance.

[RunningMan]

I don't think you have anything to worry about because of the credit. However, acquisistions can result in layoffs.

a) Very large companies don't care about $1700. That doesn't even register on the radar.
b) Your managers are in IT, not accounting or legal. If you are good at your job (and your division is going to remain autonomous), they will want to keep you because it costs a heck of a lot more than $1700 to find and train a new employee.
c) If the new owner's IT department is going to take over, there may eventially be some lay offs. The security team is usually located in one place (the data center or headquarters) and not geographically dispersed. This cuts down on travel and makes it easier to manage the team. There is a problem with brain drain during these acquisitions. The most talented employees who know the most about the network and systems at the company being acquired will find new jobs the easiest. These are the guys you want to keep at least long enough to pick their brains. Long term employees may be offered layoff packages to retain them until the transition is over. Some employees will be kept after the acquisition for local support. These are usually desktop support type of folks, but I have seen network support employees retained.

[meateater]

Hi JL,
I would try not to worry about it. First, there's probably nothing you can do. Second, even if they review your credit, they may not specifically notice the debt to the company. Third, even if they notice it, if there's no other reason to want to get rid of you, $1700 is very little money to risk some sort of wrongful termination lawsuit (and it would probably cost more than that to get a lawyers opinion as to whether they could terminate for that reason).

I worry for my own employment, but realize that other than having a plan as to what to say if asked about my finances, there's nothing else I can do, so I try not to worry about it. You could try figuring out all possible scenarios and how you would react, but since its an aquisition, employees might be let go for reasons having nothing to do with background info.

[Flamingo]

I agree with RunningMan. I don't think you have an issue as to your Chapter 13 - the issue may be after you get in there and this new company decides to cut costs and layoff. It happens all the time with buyouts and mergers. What I suggest you do is make yourself as indespensible as possible, be punctual, do not miss work and be on the ball and make yourself noticed - that could save your job if they perceive any cuts are to be made. Be one step ahead of everyone else to show you are a loyal employee, go one step beyond what you do and show you are there to make money for the company.

[RunningMan]

Be one step ahead of everyone else to show you are a loyal employee, go one step beyond what you do and show you are there to make money for the company.

I hope you don't take offense Flamingo, but I had to laugh at this. Unfortunately, IT is never viewed as a revenue source unless you work for an IT consulting company. You might be able to save the company money, but you can't make the company money. IT is an expense and a very large one at that. That isn't to say IT is not important, but consolidating computer systems and reducing redundant IT support staff is one of the areas executive management usually expects to save money after an acquisition.

[Flamingo]

I hope you don't take offense Flamingo, but I had to laugh at this. Unfortunately, IT is never viewed as a revenue source unless you work for an IT consulting company. You might be able to save the company money, but you can't make the company money. IT is an expense and a very large one at that. That isn't to say IT is not important, but consolidating computer systems and reducing redundant IT support staff is one of the areas executive management usually expects to save money after an acquisition.

Please note I meant my comment as an all encompassing comment to anyone (and also the OP) that if they want to help ensure keeping their position in the company if cuts may be expected after a merger/acquisition that to make themselves noticed as a team player, indispensible and there to get the job done for their employer could help them remain there. My hubby worked in IT management for years but I am not just referring to IT in this matter - if the OP shows himself as top of his field and his main concern is his employer/job, he has a better chance of staying there that someone that doesn't. All employees are hired to make a company money so the more you indicate you are there for the employer, the better. If one sits and languishes at one's desk or misses a lot of work, who do you think has a better chance of staying with the company? :-)

[jl37]

Thank you for all of your replies. Actually it's funny you should talk about IT as revenue producing. We are in fact that exception and are a service to be offered by the new company. In any case I have an excellent reputation with my current employer and have been recognized in front of the entire company on more then 1 occasion including in the last 2 months. I guess what I was getting at is legally can a company that you have as a creditor in a Chpt 13 terminate but I believe I got my answer. Thank you very much Running Man, Flamingo and Maneater for you responses.

[RunningMan]

Flamingo, you are abolutely correct in what you are saying. I was just picking nits over a personal sore point as someone who has worked in IT for a couple of decades both as an IT consultant and as an employee of large corporations.

[RunningMan]

It sounds like you are in a very good position then and are no more likely to lose your job than anyone else in your department.

[Flamingo]

Thank you for all of your replies. Actually it's funny you should talk about IT as revenue producing. We are in fact that exception and are a service to be offered by the new company. In any case I have an excellent reputation with my current employer and have been recognized in front of the entire company on more then 1 occasion including in the last 2 months. I guess what I was getting at is legally can a company that you have as a creditor in a Chpt 13 terminate but I believe I got my answer. Thank you very much Running Man, Flamingo and Maneater for you responses.

Legally, no, but if you are an at will employee they can terminate you for any reason and you can leave for any reason. If you are terminated, it will be due to the buyout and any necessary cutbacks that may be made and you would never know if the BK was an issue. Just do the best you can and shine on...

[Peeps]

I think the intent was to suggest employees can take steps to show they "add value." They may not bring money directly into the organization but if people develop processes/practices that increase productivity or add some other value it always looks good.

[jl37]

Just an update. We have reached the point of offer letters which of course do specify contingent on pre-employment background check. However, in signing the form allowing the background check it only mentioned criminal, education and employment. I did come clean and let my boss know about the chp 13 and he told me they would do whatever we they had to to fight for me if it comes up. He mentioned that in other cases he was involved with he's never seen bad credit etc get someone let go during a merger acquisition. He only has seen it help decide when someone is coming in off the street. In any case I feel somewhat better about my situation other then the eventual uncertainty down the road due to the acquistion but still holding my breath until at least a few weeks after the close.

Thanks again for everyone's replies.

[chicagoannie]

Just an update. We have reached the point of offer letters which of course do specify contingent on pre-employment background check. However, in signing the form allowing the background check it only mentioned criminal, education and employment. I did come clean and let my boss know about the chp 13 and he told me they would do whatever we they had to to fight for me if it comes up. He mentioned that in other cases he was involved with he's never seen bad credit etc get someone let go during a merger acquisition. He only has seen it help decide when someone is coming in off the street. In any case I feel somewhat better about my situation other then the eventual uncertainty down the road due to the acquistion but still holding my breath until at least a few weeks after the close.

Thanks again for everyone's replies.

Glad to see your update. Hope it all works out and that you stay with the new owner. Let us know what happens.

[jl37]

Just another update. It is looking much better now. We've reached a few weeks post deal and things like benefits etc have been signed up for. The new acquisition also knows about the bankruptcy as they have already started taking payroll deductions so it seems everything is going to be ok at least for the time being. Thanks for everyones responses.

[RunningMan]

Thanks for the update. Good luck!