Is my employment protected if I have to declare bankruptcy?

Is my employment protected if I have to declare bankruptcy? I have a fairly open relationship with my boss and I want to tell him what I’m doing but not if I can lose my job or if bankruptcy is considered grounds for dismissal.

One Comment

  1. That is a tricky question. The bankruptcy code prohibits both private and government employers from firing you for filing a bankruptcy. If the employer does fire you shortly after a bankruptcy, you would have a case of discrimination against such an employer.

    Section 522(b) of the bankruptcy code specifically 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, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt.”

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