Are you concerned that filing for bankruptcy could get you fired or affect your employment in any other way? You may think that there is still a stigma associated with bankruptcy or you’ve encountered a question on your job application: “Have you ever filed a bankruptcy case?” Any bankruptcy attorney Santee residents rely on will tell you that it is illegal not to promote or hire someone just because they filed bankruptcy.

Your lawyer will also add that there are, however, certain circumstances under which bankruptcy can affect your employment. Read on to find out how filing for bankruptcy can impact your career.

Can I be denied employment because of bankruptcy?

According to Section 525 of the Bankruptcy Code, a governmental unit cannot deny employment to a debtor. If you consult a bankruptcy attorney in Santee, they will inform you that the U.S. Code also prohibits discrimination in any government-employee relation.

On the other hand, the paragraph that denotes private employers doesn’t contain the phrase “deny employment”. Though it states that private employers cannot discriminate with respect to employment, the Code has not created a bulletproof protection for debtors against hiring discrimination by private employers.

Companies often perform a credit check when a job requires a security clearance or involves cash, accounting, finance, or valuable merchandise. In case you’ve filed bankruptcy and your potential employer asks about it, you must answer sincerely. This doesn’t automatically mean that you’ll be out of the race for the job. However, if you get hired and your employer finds out that you weren’t honest, you are likely to be fired.

Can filing bankruptcy jeopardize my professional licenses?

Section 525 of the Bankruptcy Code protects debtors from any type of discrimination when they apply for a license. It reads that “a governmental unit may not deny, revoke, suspend, or refuse to renew a license permit, charter, franchise, or other similar grant.” Keep in mind, though, that many professions include character-based or moral requirements in their set of standards.

Can my employer fire me because I filed a bankruptcy case?

An employer cannot terminate your employment only because you filed bankruptcy. Section 525 also prohibits both government and private employers from discriminating and firing someone who is or has been a debtor or has gone bankrupt.

Once you’ve been hired, besides being fired, you cannot be laid off, demoted, denied a bonus, or disciplined in any way solely because you filed for bankruptcy. Your employer is not allowed to use your bankruptcy case as an excuse to take any discriminatory action against you.

Contact #1 bankruptcy attorney Santee residents can rely on

If you believe bankruptcy may be right for you, discuss your options with a bankruptcy attorney Santee residents put their trust in. Don’t let your worries stop you from filing. If you live in San Diego or Riverside County, California, reach out to Chang & Diamond, APC.

Our lawyers will examine your case and explain you the difference between the types of bankruptcy. Call us at (619) 312 – 4900 or (800) 718 – 8118 for a free initial consultation.