Category Archives: Bankruptcy

Can An Employer Use a Potential Employee’s Bankruptcy Against Him?

can-a-bankruptcy-be-used-against-you-by-an-employerBesides the social stigma of filing for bankruptcy, bankrupt debtors, both those who are enduring and have completed the bankruptcy process, will need to contend with potential employment discrimination. Current and potential employers may have concerns about the debtor’s character, thereby hurting a debtor’s chances of continuing or securing employment.

Congressional Response

In response to post-bankruptcy employment discrimination, Congress enacted section 525 of the U.S. Bankruptcy Code. Specifically, the Code in section 525(a) provides that “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 or a bankrupt or a debtor under the Bankruptcy Act.” In section 525(b) the Code provides that “[n]o 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 … Read the rest