Laws Protecting Employees from Bankruptcy Discrimination

You can't be fired because you've filed for bankruptcy.

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The federal Bankruptcy Code protects bankruptcy filers from discrimination by the government and by private employers. Here are the rules:

Public Employees

If you work for the federal, state, or local government, you cannot be denied a job or fired because of your bankruptcy filing. If a government employer refuses to hire you or terminates your employment because of your bankruptcy, you should speak to an experienced employment lawyer. 

Private Employees

Private employees are also protected from discrimination, but the law doesn't expressly protect applicants. Most courts to interpret the law have found that it prohibits discrimination only against current employees, not discrimination in the hiring process. 

If you believe you were fired or faced on-the-job discrimination (for example, you were denied a promotion or raise) because of your bankruptcy, contact an experienced employment lawyer to learn your rights. 

Updated by: , J.D.

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