When you’re considering filing for bankruptcy, it is important to consider all the ways that filing will help you as well as the ways in which it may harm you. Many of our clients ask us if their employer can fire them for filing for bankruptcy protection.
An Employer Cannot Fire An Employee Based Solely Upon a Bankruptcy Filing
The law prohibits against discriminatory treatment of debtors based on a bankruptcy filing. The law protects government employees and employees of private companies. In fact, there are a number of legal protections in place for debtors. A governmental unit or private employer may not discriminate against a person solely because the person was a debtor, was insolvent before or during the case, or has not paid a debt that was discharged in the case.
Under the law, the government may not terminate an employee, discriminate with respect to hiring, or deny, revoke, suspend, or decline to review a license, franchise, or similar privileged based on a bankruptcy filing.
Private employers may not discriminate with respect to employment if the discrimination is based solely upon the bankruptcy filing. 11 U.S.C. §525(b).
Security Clearance & Background Checks
Jobs that require security clearances may be affected by filing bankruptcy; however, it is unlikely that a bankruptcy filing puts your security clearance at risk. In fact, bankruptcy is often viewed as taking appropriate measures to deal with debt problems. This is viewed more favorably than carrying outstanding debt and missing payments. And again, no employer is allowed to fire you based on filing for bankruptcy.
In some cases, future job application may be affected by filing for bankruptcy. While the government is not allowed to consider a bankruptcy filing when deciding whether or not to hire a job applicant, this rule does not apply to private employers. This is of particular concern for people who plan to apply for jobs that require them to handle money or finances.
Consult with a Bankruptcy Attorney
You deserve a financial fresh start, and we’re here to help you achieve it. We’re here to help you through your bankruptcy case from start to finish. It is our mission to ensure that you understand the power and benefits of bankruptcy. We’re here to answer all of your questions. Contact us right now (912) 351-9000 to schedule a free consultation. Together we will explore how bankruptcy can help you.
For over 35-years we have proudly served the people in Savannah, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Springfield, Pembroke, Brooklet, Garden City, and Ludowici, Georgia.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.