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Will Bankruptcy Affect My Employment in San Fernando Valley?

Federal law makes it unlawful to terminate an employee or to discriminate in hiring because a person:

  • Has sought protection under the Bankruptcy Act
  • Has had financial problems before seeking protection under the Act
  • Has unpaid debts that were discharged under the Act

However, discrimination takes many forms. If a current or prospective employer runs a credit report on you they will see evidence of your bankruptcy. If they somehow believe that bankruptcy carries a burden that will affect your work, they may (illegally) find another excuse to fire you, but that would be difficult to prove. They may also decide to hire another more qualified person for the job, which would not be illegal.


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