Bankruptcy and Employment | on your debt


Will bankruptcy affect my employment?

A common question from our clients who are considering filing for bankruptcy is whether or not it will affect their employment.

The answer

According to 11 U.S. Code § 525, neither a government nor a private employer shall “terminate the employment of, or discriminate in respect of employment, of any person who is or was a debtor under this title, a debtor or bankruptcy debtor under the Bankruptcy Act, or any person associated with such debtor or receiver”

So it is clear that your employer cannot fire you or discriminate in any way just because you have filed for bankruptcy. When this question is asked, we assure our customers that federal law protects them from being fired from their jobs and otherwise penalized simply for filing for bankruptcy.

Employment & Insolvency?

Most of our clients are satisfied that they are protected from discrimination by their employer, but some question whether their employer even needs to know that they are filing for bankruptcy. The answer to that question is that there is no law that says you must tell your employer directly that you have filed for bankruptcy. Some exceptions may affect security reviews. In this case, you must refer to your employment contract for possible requirements and procedural details. Most workers are not required to sign an employment contract and, fortunately, fall into the non-reportable category.

For help with this or any other matter

Attorneys at law firm Bond & Botes have been dedicated to helping people deal with debt and move towards a more stable financial future for decades.

Contact us at Bond & Botes to help you through this inflationary time as we help people struggling in debt

We are local and offer a free confidential personal consultation with an experienced lawyer. We also offer free consultations from the comfort and security of your home or office via phone and/or video if you wish. Let us solve your financial problems. There is no obligation, and that means no disadvantage in gathering the information you need to make good decisions about how to break the cycle of debt stress and move forward. We can answer all your questions about Chapter 7 bankruptcy, Chapter 13 bankruptcy, ending a foreclosure or wage garnishment, avoiding liens, terminating lawsuits, paying off medical debt, personal loans, payday loans, credit card debt, etc. We can relieve your stress! We want to help and we can help you!

Bond, Botes, Sykstus, Tanner & McNutt, PC



102 South Court St, Suite 314, Florence, AL 35630

Phone: 256-760-1010 • Fax: 256-760-1023

Office Hours: Monday – Friday • 8am to 5pm

No representation is made that the quality of legal services to be provided will be higher than the quality of legal services to be provided by other attorneys.


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