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Can I Be Fired for Filing Bankruptcy?

Employment And Bankruptcy

Many people who come into our office are concerned that their employer will find out if they filed bankruptcy and they’ll get fired for filing bankruptcy in Colorado. Some are even concerned about whether they’ll lose their security clearance.

You Can’t Lose Your Job For Filing Bankruptcy In Colorado

Federal law prohibits employers from firing an employee for filing bankruptcy.  However, there are a growing number of appeals courts that have ruled that private employers may refuse to hire someone who has filed bankruptcy.  At the time of this writing, there has been no court decision in Colorado on whether an employer can refuse to hire someone who has filed bankruptcy. Also, your employer will not get a notice of your filing.

The Bankruptcy Code also prohibits governmental employers from discriminating against employees, or prospective employees, who have filed bankruptcy. The Code also prohibits any agency from refusing to give you a professional license because you filed.

It’s important to remember that even though your current employer can’t fire you, your future employment may be affected. Of course, even if a prospective employer refuses to hire you because you’ve filed bankruptcy it’s likely to be almost impossible to determine if that was the reason. The best course to take when you’re interviewing for a new job and you know that they’re going to run your credit report is to be proactive and disclose your bankruptcy. They’ll appreciate your honesty and will give you a chance to explain your decision to file before they can ask.

Also, bankruptcy may or may not affect your security clearance. It can depend on the reasons why you’re filing. The best course is to talk to your supervisor or your human resources department about filing bankruptcy to see if they can tell you more. In our experience, it’s important that your employer learns about your bankruptcy from you instead of having to come to you to ask about it.

The decision to file bankruptcy in Colorado is a big one and can have significant consequences.  Our role is to guide you through the process and help you understand it.  We will be with you every step of the way to make sure that your creditors or the bankruptcy trustee don’t take advantage of you.

Talk To A Denver, Colorado Bankruptcy Lawyer About How Bankruptcy Can Affect Your Employment

To learn more about whether bankruptcy will impact your job, schedule your free, confidential bankruptcy consultation with a bankruptcy attorney in our Denver office today. You can schedule an appointment by using our online scheduling system or you can call 303.331.3403 to schedule a consultation at a time that is convenient for you.

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We are Denver, Colorado bankruptcy attorneys. Our lawyers can guide you safely through the chapter 7 and chapter 13 personal bankruptcy process.
3773 Cherry Creek Drive, Suite 575
Denver, CO
Phone: 303.331.3403