Monday, August 29, 2011

Advantages and Disadvantages of Filing Bankruptcy -- Disadvantages: Part 3

Discrimination. Discrimination is a realistic concern for those that have filed bankruptcy. In fact, it is also a concern address by congress in the passing of the bankruptcy code. This part of the code is divided into two parts that, for the most part, mirror each other, with few exceptions; one part addresses the government, and the other addresses non-governmental.

A recent court case highlighted the difference between the two section of the law. Generally, private employers may discriminate against the hiring of individuals that have filed bankruptcy, whereas governmental employers may not. Yes, that's the only major difference in the two sections. Neither allow the discrimination of individuals by employers, that is, employees may not be discriminated against by their employers.

I have not run across this as being a major issue, though there are several court cases that address these issues. In my experience, there is a far greater likelihood of one being discriminated against because of excessive debts, than the filing of bankruptcy. In fact, some people have obtained a discharge in bankruptcy in order to be eligible to maintain their employment, or receive security clearances.

If you are concerned about discrimination, you should contact a local bankruptcy attorney and discuss this with him or her, as this can only be properly addressed on a case-by-case basis.

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