Can I Be Fired For Filing Bankruptcy?

The bankruptcy process is often scary enough for people experiencing financial hardships. Many people fear the stigma associated with bankruptcy and worry that their family and friends will find out about the bankruptcy.  In fact, no one will find out about a bankruptcy unless you tell them, or they have legal reasons to pursue this information with the local government.

It is these fears, along with a lack of understanding about the bankruptcy process that prevents many people from experiencing the benefits bankruptcy has to offer. Bankruptcy is a valuable resource that is designed to help people, not hurt them.

Isn't My Case Public Record?

Although a bankruptcy filing does become public record, the information is not listed in the paper or printed on a billboard. The "public record" aspect refers to the information being publicly available through a local government agency.  However, this does not mean that anyone off the street can walk in and find your information. The information is "public" only in the sense that creditors, and the like, have access to the information.

Are there Any Laws To Protect Me?

In fact there are, the bankruptcy code prohibits certain discriminatory actions against anyone on the sole basis of their bankruptcy filing. Bankruptcy Code 11 U.S.C. section 535(b) states:

"No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title … solely because such debtor … is or has been a debtor under this title…."

This law is intended to prevent the discrimination of those who seek protection through bankruptcy. One important caveat of this law is that it only extends to the basis of discriminating against someone for having filed bankruptcy; and does not protect anyone with additional employment related problems.

A Flaw In The System?

Recently, a woman from Kanawha County, West Virginia has filed a lawsuit against her former employer, Gymboree, on the grounds she was wrongfully terminated as the result of a bankruptcy filing. The woman maintained a position as the manager of the store, which was stripped of her only seven days after filing a bankruptcy petition.  The woman claims the store had no real basis or grounds for the firing and is pursuing damages in court.

Does she even have a case?

For the woman in Kanawha County, West Virginia, the burden of proof is on her to demonstrate she was terminated solely for the reason of having been associated with a bankruptcy filing. It is more likely that she was terminated for a legitimate reason that happen, by accident, to coincide with the bankruptcy filing.

For more information visit: http://leebankruptcy.com.