Can I Be Fired for Bankruptcy?

Many workers may be left with a sense of uncertainty regarding their employment status if they file for bankruptcy. However, the bankruptcy code does not allow an employer to terminate a person’s employment simply because they have filed bankruptcy. If an employee has filed for bankruptcy, but loses their job, there may be other causes for the lay-off.

To discuss your legal options if you are facing bankruptcy and need advice, contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC, at (205) 324-4000 today.

Losing a Job and Bankruptcy

The federal bankruptcy code prohibits employers from terminating employees who have filed for bankruptcy with the sole reason being that they filed for bankruptcy. However, these employers are not prohibited from firing an employee if there are other workplace problems linked to that individual. The following issues may be brought up that lead to an employee’s termination:

  • Loss of productivity due to bankruptcy stress

  • Missing work for court dates

  • Poor work attitude due to bankruptcy-related distress

  • Lacking a means to commute to work

 

These issues can prove very serious for an employee, as an employer does not need to take bankruptcy into consideration for terminating that employee for associated problems.

It is important to remember that an employee cannot be fired only if they are filing for bankruptcy, but may be fired if an employer files for bankruptcy.

Contact Us

If you are considering bankruptcy as a means to deal with overwhelming debt, we may be able to help. To learn more about your rights and options as a debtor, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, by calling (205) 324-4000.

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