Bankruptcy And Employment Discrimination
Many people are in a financial situation where bankruptcy may be their only option for a fresh start but they are hesitant because they don’t want to ruin their chances of getting a job. Coupled with a troubled economy, it’s no wonder people are doing everything they can to keep or get a job.
A common question Dallas area bankruptcy attorneys hear is whether an employer can discriminate against an employee or a job applicant due to a bankruptcy. The good news is that Section 525 of the Bankruptcy Code prohibits private employers from terminating employees or discriminating with respect to employment solely because a person: (1) is or has been a debtor in bankruptcy; (2) has been insolvent prior to filing bankruptcy but before receive a grant or denial of a discharge; or (3) has not paid a debt what was dischargeable or was discharged in bankruptcy.
Another question bankruptcy attorneys get asked is whether they should reveal their bankruptcy to their employer or a prospective employer. In this economy, it can be expected that employers will be more selective and perform pre-employment background screening. How you respond depends on a variety of factors and a bankruptcy attorney can advice you on your rights and obligations regarding bankruptcy.