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.

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text. captcha txt