December 12, 2019 By:
Under the bankruptcy laws, an employer is prohibited from taking any type of retaliatory action in response to an employee’s personal bankruptcy filing. You cannot be fired, demoted, or subjected to any loss of benefits because of a bankruptcy filing. This rule is without exception. It applies even if you work in a fiduciary position—such as a trust officer or financial advisor—or a job that requires security clearance. In terms of security, it may be a greater risk if you opt not to file for bankruptcy protection as you might be more susceptible to blackmail.
It’s important to understand, though, that these rules apply only to actions taken after you have filed for bankruptcy. If you disclose to an employer that you are merely considering filing for bankruptcy, the protections do not apply.
As a general rule, private employers may choose not to hire individuals who have filed for bankruptcy. Most state, local, and federal agencies, however, cannot use that as a basis for denying employment.
I provide a free initial consultation to anyone with questions or concerns regarding a bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.