Blog sponsored by Bankrupt-Law.com


Q: Can an employer terminate a debtor's employment solely because the person
was a bankruptcy debtor or failed to pay a debt that was discharged in
bankruptcy?

A: The law provides express prohibitions against discriminatory treatment of
debtors by both governmental units and private employers. 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.

The law prohibits the following forms of governmental discrimination against
bankruptcy debtors:

Terminating an employee;

Discriminating with respect to hiring; or

Denying, revoking, suspending, or declining to renew a license, franchise,
or similar privilege.

A private employer may not discriminate with respect to employment (hiring,
promotion, unequal treatment, termination, etc.) if the discrimination is
based solely on the bankruptcy filing.

From the Administrative Office of the U.S.