Can an employer discriminate against a person who has filed bankruptcy?

It is illegal for either a private or government employer to discriminate against a person concerning his employment solely because the person has sought relief in bankruptcy. This refers to firing, hiring, promotion, demoting etc. It is like any anti-discrimination provision, such as race, religion, gender etc. Ask a competent bankruptcy attorney about possible limitations on this protection.

Similarly, it is also illegal for local, state or federal government units to discriminate against a person who has sought bankruptcy relief as to granting of licenses, permits and similar grants. For example, if you owe someone damages resulting from an automobile accident and you did not have insurance or other ability to pay the damages, your driver’s license and car registration plates may be suspended until the debt is paid. Bankruptcy is the same as satisfying the debt, which means you can get your license back.

Likewise, a utility company (phone, electric, gas, water) cannot refuse to provide future utility service if a prior debt to the utility has been satisfied in bankruptcy. However, the company may require a deposit or other security to reasonably assure payment for future utility services.

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You may not be posted for foreclosure right now and may not be for a while,
but keep in mind:

- Your missed payments are still adding up every month.

- Do not wait so long that you cannot afford to repay the missed payments.

- We offer a free consultation to go over all your options.

- You may want to meet now so that you are prepared when COVID delays end.

*Joseph W. Shulter is Board Certified in Consumer Bankruptcy Law by the Texas Board of Legal Specialization.