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Can my bankruptcy prevent me from getting hired?

On Behalf of | Oct 6, 2016 | Chapter 7 Bankruptcy

If you have a North Carolina bankruptcy on your financial record, being employed is likely a very important issue to you. If you are searching for a new job, you may be concerned that you could be denied the position if the employer becomes aware of your bankruptcy. If you look to the courts for an answer on this important issue, you will likely find some conflicting information, according to The Huffington Post.

Under the law, employers are expressly prohibited from firing someone or denying someone a job for discriminatory reasons such as their age, race or gender. The United States Bankruptcy Code does explicitly state that you cannot be terminated from a position you already have because of your bankruptcy. The code also prohibits government employers from discriminating against job applicants who have filed for bankruptcy. However, the code says nothing about prohibiting private employers from using bankruptcy to deny someone a job.

One way to fix this problem would be to amend the code. The other would be have a case be heard by the Supreme Court relating to this matter. While at least two cases heard before the United States Court of Appeals determined that private employers are permitted to discriminate on the basis of bankruptcy, one United States District Court ruled just the opposite, that applicants are protected under the Bankruptcy Code.

With no general consensus, it is not clear whether or not a private employer can deny you a job because you have filed for bankruptcy. This information is general in nature and should not be interpreted as legal advice.


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