Can I be Fired for Filing Bankruptcy is a question we get all the time. Filing Bankruptcy is a nerve wracking process for many people.  There are questions about credit, keeping homes and vehicles, and also future income.  Of these concerns, our clients often ask if they can be fired for filing bankruptcy.

Can I be Fired for Filing Bankruptcy?

The initial answer is no.  You cannot be fired for filing bankruptcy.  In many cases an employer will not even be aware of your filing. There are only a few ways an employer will have definite notice of your filing.  This is generally due to garnishments on your wages.  Other ways are if you have repeatedly asked for cash advances on your checks. However, in the cases that your employer is aware, they cannot take any adverse employment actions simply because you file bankruptcy.  This means an employer may not discriminate against you for promotions, cut your hours, or reduce your pay due to their knowledge of your bankruptcy filing.

Can I Sue if I am?

If an employer does fire you immediately or almost immediately after you file bankruptcy, then you may have cause for a legal action.  You may also have legal action if an employer cuts your hours or reduces your pay immediately after filing, if this is a result of your filing.  Further, it may be a public or private employer—there are no designations in this statute.  However, an employer may terminate your for any other plausible reason.  If you believe the real reason you face termination is for filing bankruptcy, then you have legal recourse.

QUESTIONS ON LIENS AGAINST YOUR HOME AND BANKRUPTCY?  THIS ARTICLE EXPLAINS MORE.

Generally, you cannot be fired for filing bankruptcy from your current employer.  It is important to note that filing in some rare occasions might cause issues in you receiving gainful employment afterwards.  But in terms of your current job and for most future jobs, you can feel secure in your position regardless of filing bankruptcy. If you have more questions or believe an employer is retaliating against you for filing, contact an attorney.  Our attorneys offer a free consultation to clients.