Law

Bankruptcy and Employment: Understanding the Discrimination Laws

Bankruptcy is to provide relief from the financial stress. However, it is associated with challenges that are driven by financial hardships or unforeseen circumstances. Even after filing the bankruptcy, individuals are worried about their employment status and whether they will be discriminated against by the employer. So, in this article, we will understand the relationship between bankruptcy and employment and what the discrimination law conveys. 

Understanding your rights regarding bankruptcy-related discrimination will help you feel more confident about your job and prospects. However, when you are involved in a bankruptcy case in California, you must consult a bankruptcy attorney who can explain to you in detail about the legal prospects. There are various legal provisions like Chapter 13 bankruptcy California income limits and other such provisions that you must know and therefore, consult an experienced attorney for your case. 

Exploring Bankruptcy and Employment Discrimination: 

Bankruptcy is a legal process in which an individual or a firm decides to start a new and fresh financial journey by discharging the old debts. There would be the establishment of a repayment plan that will help you clear previous debts and start a new financial journey. However, despite its benefits, people are worried that their bankruptcy may lead to discrimination in the workplace. 

However, the fact is different, as per bankruptcy codes, the employer cannot discriminate against workers who have filed for bankruptcy. This rule applies to both private and public employers. In addition to this, federal entities are also prohibited from discriminating against prospective employees based on their records of bankruptcy. 

What to do if an employer fires you for filing bankruptcy? 

If there is a case in which you lose your job due to filing your bankruptcy, then there are provisions against the employer. 

  • You can file a charge of discrimination with the US Equal Employment Opportunity Commission. You can also file this charge in your state or federal law agencies. 
  • Hire an attorney who will assist you in your case and provide experienced guidance while filing a lawsuit, negotiating with the past employer or any other things regarding the case. 
  • You can also claim wrongful termination that violates public policy or breaches an employment contract. 

So, these are certain provisions that can help you in bankruptcy and employment cases. If you are stuck at any point, then you can take guidance from the lawyers and not allow any employer to discriminate against you due to bankruptcy. 

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