The Law Prohibits Employment Discrimination Based on Bankruptcy – Personal Injury Attorney | Car Truck Accident

Frequently, our clients and potential clients are extremely concerned about the consequences of filing for bankruptcy protection under Chapter 7 or Chapter 13. Not surprisingly, one of their greatest fears is that they may be fired or not hired for a job because they have or are about to file bankruptcy.

While the Fair Credit Reporting Act allows current and prospective employee’s credit scores and related information to be used by employers, the United States Bankruptcy Code expressly prohibits employers from discriminating against employees for seeking bankruptcy protection. 11 U.S.C. Section 525(b) states:

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.

The bankruptcy attorneys at PERENICH The Law Firm have decades of experience helping individuals and companies find options and solutions to their financial issues during these difficult times. These may include Chapter 7 bankruptcy, Chapter 11 bankruptcy, Chapter 13 bankruptcy, and foreclosure defense.