Can I be fired because of a bankruptcy? 21 Answers as of June 10, 2013

I work as a salesman for a small company. Because I do do sales, I was given a company credit card for expensing gas and hotels. After they learned that I filed for chapter 7 last month, they let me go claiming performance reasons but I know it was due to the BK. Is this legal? What can I do?

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Law Office of Asaph Abrams
Law Office of Asaph Abrams | Asaph Abrams
Federal protection is provided under 11 U.S.C. 525(b), which states in part: "No private employer may terminate the employment of, or discriminate with respect to employment against [a bankruptcy debtor]."
Answer Applies to: California
Replied: 7/15/2011
Engberg Law Office
Engberg Law Office | Harry A. Engberg
There is a Federal Law that states that they can not fire you for filing. But some jobs require Bonding and you may not be able to be bonded any longer. So therefore you would be unable to do your job any longer. You could be let go under these type of circumstances.
Answer Applies to: South Dakota
Replied: 7/15/2011
Theodore N. Stapleton, PC
Theodore N. Stapleton, PC | Theodore N. Stapleton
By statute no one can discriminate against you for filing bankruptcy but yopur employer could fire you for other reasons.
Answer Applies to: Georgia
Replied: 7/15/2011
Law Office of Dennis Jay Sargent Jr, PLLC
Law Office of Dennis Jay Sargent Jr, PLLC | Dennis J Sargent Jr.
According to Federal law you cannot be terminated because you filed for bankruptcy, however, you can be fired for other reasons. You would have to have evidence that your termination was in fact because of the bankruptcy and not for the claimed performance.
Answer Applies to: North Carolina
Replied: 7/15/2011
Colorado Legal Solutions
Colorado Legal Solutions | Stephen Harkess
You need to talk to an attorney. It is illegal to terminate employment because of a bankruptcy filing. If you can show that your performance had not suffered, you have a good case.
Answer Applies to: Colorado
Replied: 7/15/2011
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    This is not legal. Sue for wrongful discharge and discrimination.
    Answer Applies to: Connecticut
    Replied: 7/15/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    The bankruptcy code prevents private employers from terminating an employee solely on the basis for having filed bankruptcy. However, if they can point to other reasons as the basis for the termination, you may have a hard time disputing this. You would do best contacting an employment law attorney to see if you have a case for wrongful termination based upon your facts.
    Answer Applies to: California
    Replied: 7/15/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    A recent 11th Circuit Court of Appeals case appears to say that employers and prospective employers can make decisions based on a bankruptcy. So even if you could prove your statements, you probably lose.
    Answer Applies to: Georgia
    Replied: 7/15/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    Almost all employment in California is "at will" unless you can show some form of discrimination, such as retaliatory discharge of whistleblowers, age, race, religion and such. However, you may wish to consult an employment attorney, as the question really isn't a bankruptcy quesition.
    Answer Applies to: California
    Replied: 7/15/2011
    Apple Law Firm PLLC
    Apple Law Firm PLLC | David Goldman
    Florida is a right to work state, in most cases, unless there is a contract stating otherwise, you can be terminated for any legal reason including your credit
    Answer Applies to: Florida
    Replied: 7/15/2011
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    No.
    Answer Applies to: California
    Replied: 6/10/2013
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Pursuant to Section 525 of the bankruptcy code it is illegal for an employer, public or private, to discriminate on account of filing bankruptcy. If this happens see a labor law attorney about filing a lawsuit for wrongful termination.
    Answer Applies to: California
    Replied: 7/15/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes, they can do this bummer. You might have some rights, see an employment attorney.
    Answer Applies to: California
    Replied: 6/10/2013
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Terminating you because of bankruptcy is discrimination and against the law pursuant to 11 USC 525. However, proving that was the reason for the termination is obviously difficult.
    Answer Applies to: California
    Replied: 7/15/2011
    Law Office of J. Thomas Black, P.C.
    Law Office of J. Thomas Black, P.C. | J. Thomas Black
    A section of the Bankruptcy Code, 11 USC 525, prohibits a private employer from terminating your employment or discriminating in employment, solely by reason of you filing a bankruptcy case, or not paying a debt that is dischargeable in a bankruptcy case. However, if they have another legitimate reason to fire you, then they can do so without liability. If you believe that you were terminated solely by reason of filing bankruptcy, contact your attorney. They can bring an Adversary Proceeding in Bankruptcy Court to seek a court order ordering your reinstatement. They may instead or in addition want to also seek damages and attorney fees, although the law is silent on exactly what the remedy is for a violation.
    Answer Applies to: Texas
    Replied: 7/15/2011
    Mercado & Hartung, PLLC
    Mercado & Hartung, PLLC | Christopher J. Mercado
    Your employment is probably At Will, they can terminate you for pretty much anything unless you are part of a protected class. Bankruptcy filers isn't a protected class.
    Answer Applies to: Washington
    Replied: 7/15/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    You can't be discriminated against because of filingbut, as your case shows, they can give other reasons. Was their card listed on your petition? Is performance an appropriate reason in your case? If you can prove not, then sue them under employment law.
    Answer Applies to: Virginia
    Replied: 7/15/2011
    Benson Law Firm
    Benson Law Firm | David Benson
    It is unlawful to fire someone because they file bankruptcy. However, suing a former employer is very difficult since all they need is a good nonbankruptcy reason for the termination and they're off the hook.
    Answer Applies to: Ohio
    Replied: 7/15/2011
    Dan Shay Law
    Dan Shay Law | Daniel Shay
    Tough call. You would need to contact an employment attorney.
    Answer Applies to: California
    Replied: 7/15/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    If you can prove that you were fired only because you filrd bk then you may be able to do something. You need to speak with an employment attotney.
    Answer Applies to: California
    Replied: 7/15/2011
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