Can I Be Fired For Filing For Bankruptcy?

One question we are commonly asked by clients struggling with debt is if they will be fired from their job after they file for bankruptcy. Under U.S. bankruptcy statute, it is illegal for your employer to take any adverse employment action just because you have filed for bankruptcy.

According to Section 525(b) of Title 11 of the United States Code:

“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:

• Is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act
• 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
• Has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act”

Although this section of the bankruptcy code clearly establishes that you cannot be fired from your job because you file for bankruptcy, many people still worry that their employer or a prospective employer will take adverse action against them. However, filing for bankruptcy will give you a fresh start on your finances, which can actually improve your performance at work because you are no longer burdened with the stress of being in debt.

Do you have more questions about filing for bankruptcy to eliminate or resolve your debt? Then call (847) 440-5998 to speak with one of our experienced lawyers in Northbrook.