Can I lose my job if I file for bankruptcy?

November 13, 2009

You cannot be fired for filing for bankruptcy. Federal laws prohibit discrimination against employees based on that employee filing for bankruptcy. 

This protection is contained within Section 525 of the bankruptcy code, which states in part, “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 fact, if you are fired because you file for protection under bankruptcy laws, you may be able to sue your former employer for your losses and damages.

If you are considering filing for bankruptcy, contact the attorneys of Fears | Nachawati today for free legal advice. To speak with one of our experienced bankruptcy lawyers, email us at or call our toll-free number at 1.866.705.7584.

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