Can I be fired for filing bankruptcy?

Generally, no. Debtors are protected by section 525(b) of the bankruptcy code from termination of employment by private employers. However, this protection only extends to termination solely because of the bankruptcy, insolvency prior or during the bankruptcy, or failure to pay a dischargeable debt. Termination for other reasons, including those related to job performance and economic conditions is still permitted.

As a practical matter, most employers do not care if their employees have filed bankruptcy. Bankruptcy is relatively common, and rarely affects the employer-employee relationship. If you have particular concerns about your individual employer, we encourage you to contact us to discuss your particular circumstances.

Category: 
Process After Filing Bankruptcy
Fri, Jan 6 2012 - 3:13pm by Fabricius & Fabricius Staff
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