Is It Legal To Be Fired For Filing Bankruptcy?

By: Louis Zw Zhang

If you are planning on filing for bankruptcy, there are many things you need to know and many steps you will need to take. You may have fears about the consequences of such an extreme solution to help you resolve your debt difficulties. One of your fears may involve whether or not you can lose your job, or get fired for filing bankruptcy.

The simple answer to this question is no. No, you cannot get fired for filing for bankruptcy because federal law prohibits an employer to discriminate against you for declaring personal bankruptcy.

In fact, you will probably be happy and relieved to know that your constitutional rights protect you from being fired for filing bankruptcy. Yes, it is a violation of your rights, not to mention a crime to fire someone for filing bankruptcy. So, do not worry, your job is safe.

Times have really changed over a few hundred years. Did you know that in the past, there was no such thing as the ability to file for bankruptcy? In fact, if you couldn't pay your debts, something much worse than losing your job happened. Believe it or not, if you neglected your debts, you would get sent to debtor's prison. Yes, prison! Some people spent many, many years there.

Thank goodness times have changed. However, there are still serious consequences for not paying your debts, none of which include being fired for filing bankruptcy. You can still be sued by your creditors for not paying your debts. If you default on certain loans, your wages can be garnished. This means that money is taken out of your check before you receive it in order to be put toward debts that you owe.

The smartest choice, if you find yourself in an unmanageable debt situation, is to seek the help of a credit counseling agency. Such agencies can educate you on all of your options for your particular situation. In fact, if you do choose to file for bankruptcy, one of the requirements of the court is for you to complete a session with credit counselor from an approved agency.

And, don't worry, if you do choose to file for bankruptcy, your employer can definitely not fire you for filing bankruptcy. At least, not legally. If someone does fire you, they will be the ones in a heap of trouble, and possibly serve some prison time for violating federal law. Source: Filingbankruptcyinc dot com, Louis Zhang

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