Bankruptcy and Your Career Archives - National Bankruptcy Forum

Bankruptcy and Your Career

Consumers who are facing financial difficulty and considering filing for bankruptcy are often concerned how the process will affect their career. While there is legislation in place preventing employers from discriminating against individuals who have filed personal bankruptcy, public and private employers are held to different standards. Regardless of whether you work for the government or a private employer, federal law prohibits employers from firing an employee solely because they have decided to seek bankruptcy protection. However, filing for bankruptcy can impact your ability to get a job if you’re currently on the hunt for new employment. Section 525 of the U.S. Bankruptcy Code does not allow governmental employers to deny employment based on a bankruptcy filing, but does not expressly preclude private employers from doing so. Recent case law has held that private employers may consider bankruptcy as a reason for denying employment to a job seeker.

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