11 May Can I Be Fired if I File for Bankruptcy?
One question I am often asked is whether someone can be fired if they file for bankruptcy. The short answer is, “No.”
The Bankruptcy Code contains specific protections for people who file. Section 525(b)() says, “No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or her been a debtor under this title…solely because such debtor is or has been a debtor under this title or has not paid a debt that is dischargeable in a case under this title.” In other words, if you’re fired solely because you filed for bankruptcy, your employer is breaking the law, and you can sue for losses and damages.
(This is a different question from whether you can be fired if your employer files for bankruptcy, as New Century workers found out.)
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