Employment discrimination is a common concern for most people who are considering bankruptcy.
Rest assured, federal law protects you from being fired for filing bankruptcy. Specifically, debtors are protected by 11 U.S.C. Sec. 525, Protection Against Discriminatory Treatment, which prohibits employers from treating you differently for filing for bankruptcy or failing to pay a debt that can be handled through a bankruptcy.
Employers can’t “terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title…” Termination for other reasons — such as poor job performance, repeatedly being late, or not showing up when on duty — are still allowed.
Most likely, your employer won’t even know you filed for bankruptcy unless you tell them. If they do find out, some may not care, unless you work in finance, banking, or as an investor. Because bankruptcy is becoming so common, the stigma has lessened and it rarely affects the relationship between employers and employees.
The bankruptcy filing will stay on your credit report for up to 10 years, so it's possible an employer might see it that way. However, it benefits your employer to have a worker who's dealt with his or her debts, rather than someone drowning in unpaid bills who has a lot more reasons to steal.
Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.