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Can You Be Fired for Filing For Bankruptcy

24th March 2010
By Frank Smith in Bankruptcy Law
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In general you cannot be fired for making filing a bankruptcy petition under the U.S Bankruptcy Code
Usually your employer will not know you have filed for bankruptcy
Under Section 525(b) of the U.S Bankruptcy Code you cannot lose your job for filing for bankruptcy

Many people who are struggling with spiralling debt problems and are considering filing for bankruptcy are nervous that their employer will find out about their debt problems and that they may face losing their job. If you are considering bankruptcy you are undoubtedly worried about keeping your application process.

Under normal circumstances there is no reason to think that your employer will even discover you have filed for bankruptcy. The exceptions to this are if under the bankruptcy proceedings it is decided that there is to be a wage garnishee when the payroll department at your place of work will be notified to discontinue an income executions to creditors or if the court decides you should make a structured payment plan through wage deductions and then the payroll department will need to know who to send the payments to.

It is very unlikely your employer will have the time or energy to check at the local bankruptcy court to see if you have filed a petition for bankruptcy. However, if your employer does discover you have filed for bankruptcy, you cannot be fired for this. Under Section 525(b) of the U.S Bankruptcy Code you are protected from being fired from your job for filing for bankruptcy. Under this code a private employer cannot terminate your employment or discriminate against you on the basis you have filed for bankruptcy.

While you cannot be fired solely on the basis that you have filed for bankruptcy, if your performance at work is below par, possibly because of your money worries, then you could be fired for poor performance.

To discuss your debt problems with a consumer bankruptcy attorney visit the web pages of the Jodat Law Group, helping people with bankruptcy claims in Florida with offices in Tampa, Venice, Bradenton and Sarasota.

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