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Bankruptcy Law

If I file for Bankruptcy, Can I be Fired?

Myths about unemployment One question we are often asked is whether someone can be fired from their job if they file for bankruptcy. The quick answer is, "No."  The Bankruptcy Code contains specific protections for people who file.  Section 525(b) says:
"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. "

In other words, if you're fired solely because you filed for bankruptcy, your employer is breaking the law, and you can sue for losses and damages.

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