Bankruptcy And Employment | On your debt

Will bankruptcy affect my job?

A question frequently asked by our clients who are considering declaring bankruptcy is whether or not it will affect their employment.

The answer

According to 11 U.S. Code § 525, neither a government nor a private employer “shall terminate the employment of a person who is or has been a debtor under that title, debtor or bankrupt under bankruptcy law or discriminate against him in employment”. , or a person associated with such debtor or bankrupt”,

It is therefore clear that your employer cannot fire you or discriminate against you in any way simply because you have declared bankruptcy. When asked this question, we assure our clients that federal law protects them from being fired and otherwise penalized in their jobs solely because they have filed for bankruptcy.

Employment and bankruptcy?

Most of our clients are happy to be protected from discrimination by their employer, but some wonder whether or not their employer should know about their bankruptcy filing. The answer to this question is that there is no law stating that you must directly inform your employer that you have filed for bankruptcy. Some exceptions might relate to security permissions. In this case, you will need to refer to your employment contract for any requirements and details of the process. Most workers do not have to sign an employment contract and therefore fortunately fall into the “not required to inform” category.

For help on this or any other topic

Lawyers at Bond & Botes law firms have dedicated decades to helping people resolve their debts and move towards a more stable financial future.

Contact us at Bond & Botes to help you get through this time of inflation as we help people struggling with debt

We are local and offer a free, confidential face-to-face consultation with an experienced attorney. We also offer free consultations in the comfort and safety of your home or office by phone and/or video if you wish. Let us solve your financial problems. There’s no obligation, and that means there’s no downside to gathering the information you need to make good decisions about how to break the cycle of debt stress and go forward. We can answer all of your questions regarding Chapter 7 bankruptcy, Chapter 13 bankruptcy, stopping a foreclosure or wage garnishment, avoiding liens, stopping a lawsuit, l medical debt, personal loans, payday loans, credit card debt, etc. We can relieve your stress! We want to help you, and we can help you!

Bond, Botes, Sykstus, Tanner & McNutt, PC



102 South Court Street, Suite 314, Florence, AL 35630

Telephone: 256-760-1010 • Fax: 256-760-1023

Opening hours: Monday to Friday • 8:00 a.m. to 5:00 p.m.

No representation is made that the quality of legal services to be provided is superior to the quality of legal services to be provided by other attorneys.

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