Discrimination Due to Bankruptcy Filing

August 1, 2019 | By Steffens Law Accident Injury Lawyers
Discrimination Due to Bankruptcy Filing

Filing for bankruptcy is a difficult decision, but you do not need to worry about discrimination after filing for Chapter 7 protection. It is illegal for either private or governmental employers to discriminate against a person as to employment because that person has filed a Chapter 7 case. It is also illegal for local, state, or federal governmental agencies to discriminate against a person as to the granting of licenses, permits, student loans, and similar grants because that person has filed a Chapter 7 case.

Understanding Discrimination

What constitutes discrimination? According to the bankruptcy code, filing a Chapter 7 bankruptcy can't be used as grounds for:

  • Denying you employment
  • Terminating existing employment
  • Denying or terminating public assistance benefits
  • Denying a driver's license
  • Withholding your college transcript
  • Exclude you from government-guaranteed student loan programs
  • Denying you a liquor license for a business
  • Denying you a contract, such as a contract for a construction project

However, this doesn't mean you won't encounter difficulty after filing for bankruptcy. Denials for loans or employment based on poor credit history are allowed as long as the sole reason isn't that you filed for bankruptcy. It is legal to consider your future creditworthiness when making these types of decisions.

How Steffens Law Office Can Help

If you're thinking about filing for bankruptcy, it's vital that you understand your legal rights. Steffens Law Office can answer your questions and help you determine if a Chapter 7 filing is the best choice for managing your debt. Contact us today to get started.