CAN AN EMPLOYER TERMINATE A DEBTOR'S EMPLOYMENT SOLELY
BECAUSE THE PERSON WAS A DEBTOR OR FAILED TO REPAY A DISCHARGED DEBT?
A governmental unit or private employer
may not discriminate against a person solely because the person was
a debtor, was insolvent before or during the case, or has not paid a
debt that was discharged in the case. |
The law provides express prohibitions against discriminatory treatment
of debtors by both governmental units and private employers. A
governmental unit or private employer may not discriminate against a
person solely because the person was a debtor, was insolvent before or
during the case, or has not paid a debt that was discharged in the case.
The law prohibits the following forms of governmental discrimination:
terminating an employee; discriminating with respect to hiring; or
denying, revoking, suspending, or declining to renew a license, franchise,
or similar privilege. A private employer may not discriminate with respect
to employment if the discrimination is based solely upon the bankruptcy
filing.
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