What happens if an employer refuses to hire a bankrupt person?
The bankruptcy code clearly prohibits your present employer from firing you because you filed bankruptcy while employed. Whether your bankruptcy can affect future hiring is not specifically dealt with in the bankruptcy law, and at least one bankruptcy court has permitted discrimination against a bankruptcy debtor by new employers in their hiring process.
The Eleventh Circuit Court of Appeals recently settled this issue for Florida debtors. The court held that the Bankruptcy Code does not prohibit a private employer from denying employment to an individual on ground that the person has filed bankruptcy. The court pointed out that the Bankruptcy Code expressly prohibits a governmental unit from denying employment or terminating employment because the employee is or has been a bankruptcy debtor.
If you find yourself in such a position it is best to consult an attorney with substantial bankruptcy experience. There are so many different circumstances that a proper answer to your particular problem can only be obtained by a trained and experienced lawyer.
If you are considering bankruptcy or have a question about bankruptcy, our firm may be able to help you.
