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Will I Get Fired If I File For Bankruptcy?

Bankruptcy DiscriminationAs a single woman living in Ozone Park, Queens, Jocelyn M. was petrified that if she filed for Bankruptcy everyone she knew would find out. The fear of public embarrassment prevented her from addressing her credit card problems. The amount of collection calls steadily increased and so did her anxiety. Desperate for a cheap way to address her credit card bills she investigated how Bankruptcy could improve her situation.

 

Jocelyn met with the attorney at Doyaga & Schaefer who assured her that it was her legal right to seek a discharge in Bankruptcy and that it was illegal for an employer to discriminate against her. In real life terms she was comforted by the reality that the fresh start bankruptcy provides is looked at far more positively than large unpaid bills and aggressive creditor lawsuits. It all made sense to Jocelyn, a debt free life is nothing to be embarrassed about.

 

Jocelyn received her discharge. Her employer of 2 years never found out she filed for Bankruptcy. But even if he did Jocelyn was now confident that he would agree that people, especially a trusted hard working employee deserves a second chance.

Employment Discrimination and Bankruptcy

It is illegal for both the government and private employers to fire a person solely because they filed for bankruptcy. (11 USC §525). The Code even extends this protection to “an individual associated with [the] debtor or bankrupt …” (11 USC §525(b).  The rule makes it even harder for the government to fire an employee because they filed a bankruptcy.The Southern District of New York courts interpreted this section to also prohibit an employer from not hiring an employee because they have filed for bankruptcy. (Leary v. Warnaco, Inc. 251 B.R. 656, 2000). 

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