Thinking About Filing Bankruptcy but Worried About Your Job? Will Bankruptcy Adversely Affect My Employment? Can My Employer Fire Me Because I Have Asked for the Relief from My Creditors Available to Me in Bankruptcy?
Bankruptcy Lawyer Bill Bowlby Offers the Following Advice:
Your questions are good ones and are asked frequently. Let me begin by saying that filing bankruptcy can be a stressful experience. The competence of your lawyer should reduce your anxiety and get you focused on your goals, especially re-establishing your confidence in yourself.
It might help to begin at the beginning. In 1789, the framers of “our” Constitution of the United States at Article II, Section 8 provided that “The Congress shall have the power to establish…uniform Laws on the subject of bankruptcies throughout the United States.” Your right to have the benefit of these uniform bankruptcy laws was thus born with our country and were plainly established to help you.
Here’s just one example that the bankruptcy laws were meant not only to help you, but also to protect you against discrimination if you need to use them:
Title 11 of the U.S. Bankruptcy Code § 525 provides in part,
Protection against discriminatory treatment
(a) A governmental unit may not…deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title (Title II)…solely because the debtor has been a debtor under the Bankruptcy Act.
(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 (Title 11)…solely because such debtor (1) is or has been a debtor under the Bankruptcy Act…
So, the answer to your question “Can you be fired from your employment because you filed bankruptcy?” is generally, and in most cases, NO, YOUR EMPLOYER CANNOT FIRE YOU, IF FILING BANKRUPTCY IS THE SOLE AND ONLY REASON. Caution: the words “sole and only” suggest that in some cases there may be other reasons.”
Contact me if you think you are ready to file for help in bankruptcy. We’ll look at it together.