Can an employer fire you because you filed for bankruptcy?
I often get asked this question by my clients. The short answer is no.
The Bankruptcy Code provides debtors protections against discriminatory treatment. (11 U.S.C. Section 525). Among other things, 11 U.S.C. Section 525(b) specifically says that “No private employer may terminate the employment of, or discriminate with respect to employment against, an individial who is or has been a debtor under this title…. solely because such debtor or bankrupt - (1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; (2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or (3) has not paid a debt that is dischargeable ina a case under this title…”
I couldn’t have said it better or more clearly myself.
