One question that I get a lot is whether someone can lose their job if they file bankruptcy.  The answer is no.  The law provides that an employer, public or private, cannot discriminate against an employee because they filed bankruptcy.

However, one question that is not usually asked is how it will affect future employment. Many of my clients retain me because a job loss caused their financial difficulties. They are hoping that they will be able to get a job before the unemployment benefits run out.

Unfortunately,  a bankruptcy on your credit report can make that goal harder to attain. The bankruptcy code specifically states that an employer cannot fire you for filing bankruptcy; however, the same is not true if you are looking for a new one, at least in the private sector.

The prospects are better if you are seeking public employment, however. Section 525(a) of the bankruptcy code states that a "governmental unit may not ... deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title." Learn more here.

Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.