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TITLE 11.
BANKRUPTCY · UNITED STATES CODE
Chapter 5.
Creditors, the Debtor and the Estate
Subchapter II. Debtor's Duties and Benefits
11
USC § 525. Protection against discriminatory treatment
(a) Except as provided in the Perishable Agricultural Commodities Act,
1930, the Packers and Stockyards Act, 1921, and section 1 of the Act entitled
“An Act making appropriations for the Department of Agriculture for the
fiscal year ending June 30, 1944, and for other purposes,” approved July 12,
1943, a governmental unit may not deny, revoke, suspend, or refuse to renew a
license, permit, charter, franchise, or other similar grant to, condition such
a grant to, discriminate with respect to such a grant against, deny employment
to, terminate the employment of, or discriminate with respect to employment
against, a person that is or has been a debtor under this title or a bankrupt
or a debtor under the Bankruptcy Act, or another person with whom such
bankrupt or debtor has been associated, solely because such bankrupt or debtor
is or has been a debtor under this title or a bankrupt or debtor under the
Bankruptcy Act, has been insolvent before the commencement of the case under
this title, or during the case but before the debtor is granted or denied a
discharge, or has not paid a debt that is dischargeable in the case under this
title or that was discharged under the Bankruptcy Act.
(b) 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, solely because such debtor
or bankrupt--
(1) is or has been a debtor under this title or a debtor or bankrupt
under the Bankruptcy Act;
(2) has been insolvent before the commencement of a case under this title
or during the case but before the grant or denial of a discharge; or
(3) has not paid a debt that is dischargeable in a case under this title
or that was discharged under the Bankruptcy Act.
(c)
(1) A governmental unit that operates a student grant or loan program and
a person engaged in a business that includes the making of loans guaranteed
or insured under a student loan program may not deny a grant, loan, loan
guarantee, or loan insurance to a person that is or has been a debtor under
this title or a bankrupt or debtor under the Bankruptcy Act, or another
person with whom the debtor or bankrupt has been associated, because the
debtor or bankrupt is or has been a debtor under this title or a bankrupt or
debtor under the Bankruptcy Act, has been insolvent before the commencement
of a case under this title or during the pendency of the case but before the
debtor is granted or denied a discharge, or has not paid a debt that is
dischargeable in the case under this title or that was discharged under the
Bankruptcy Act.
(2) In this section, "student loan program" means
any
program operated under title IV of the Higher Education Act of 1965
or a similar program operated under State or local law.
[Rev. 5-12-05]
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