Chicago Bankruptcy Solutions

Many people worry that they will be treated differently should they file for bankruptcy.The truth of the matter is that if you file for bankruptcy  it is illegal for you to be fired or denied employment on the grounds that you have done so. Section 525(b) of the bankruptcy code clearly states that this sort of discrimination is illegal.

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

Now while it may be illegal to discriminate against somebody for having filed bankruptcy this does not mean that it does not happen. There is legal precident that private corporations may deny employment based on having filed bankruptcy. In this case you could either argue that they are bending the law by saying that it does apply to private companies, or if you are lucky enough to have been hired on some level first then they are in fact breaking the law. Myers v. TooJay’s Management Corporation is a prime example of this. Myers was offered the job and he accepted before they did a credit check on him. Since he was able to prove that he was offficially an employee first he had a case.