Debtors are Protected from Discriminatory Treatment

After filing for bankruptcy a debtor is protected from discriminatory treatment because of the bankruptcy filing.

Section 525(b) of the Bankruptcy Code reads:

 “(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, 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 in a case under this title or that was discharged under the Bankruptcy Act.”

What does this mean for you?

Employers cannot fire you because you filed bankruptcy and potential employers cannot decide against hiring you because of your bankruptcy filing.

If you fear you have been fired or denied employment because of a bankruptcy filing then give the office a call and we can discuss you rights, you may even be entitled to money damages.