“If I file bankruptcy, will I lose my job?”
A lot of people worry about the impact that a bankruptcy filing can have on their employment prospects. Certainly, having a bankruptcy on your record is never a good thing. But can you lose your job over it?
As it happens, Section 525 of the Bankruptcy Code deals specifically with this issue. It says that
“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—(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act;(2) 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; or(3)has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.