I need to file chapter 7 bankruptcy but I’m afraid I’ll lose my job.

Bankruptcy Code section 525(a) prohibits a government employer from denying employment to you, firing you, or otherwise discriminating against you solely because you either filed for bankruptcy protection, were (or are) insolvent, or didn’t pay debts that are or were discharged in bankruptcy.

Section 525(b) does the same thing for private employers.

That doesn’t mean that some employer couldn’t come up with another reason to not hire or fire you, or discriminate against you. But over the last two and a half decades in the Hudson Valley and after many hundreds of personal bankruptcy case filings, I don’t know of one client losing a job because they filed. And that includes bank managers, commanders and cops in the NYPD and FDNY, state and federal corrections officers, bank commercial loan officers, lawyers, doctors and others.

Furthermore, unless your wages are being garnished and I need to communicate with your payroll department to remove the garnishment, your employer may well never know that you filed.


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