Bankruptcy discrimination in employment occurs when a current or prospective employer treats an individual unfavorably because of their bankruptcy filing. The misconception that bankruptcy is a personal failure can lead to unfair judgment and discrimination in the workplace.  If your employer mistreats you due to bankruptcy, you need an experienced employment discrimination attorney to help you stand up for your rights. 

At Lipsky Lowe, LLP, we are committed to protecting employees from discrimination. We are well-versed in the applicable provisions of the Bankruptcy Code prohibiting discrimination and have a proven track record of success, so you can trust us to help you protect your professional future. Contact us today for a confidential consultation.

What Is Bankruptcy Discrimination?

Bankruptcy discrimination can arise in any aspect of employment,  from the hiring process to decisions about promotions and terminations. Specifically, employers may:

  • Refuse to hire someone because they have filed for bankruptcy.
  • Terminate an employee upon discovering their bankruptcy filing.
  • Deny deserved promotions or benefits, citing the bankruptcy as a factor.

Recognizing these forms of discrimination is crucial for protecting yourself. The Bankruptcy Code prohibits employers from discriminating against employees or potential employees based on a bankruptcy filing. 

This legal protection ensures that individuals seeking a fresh financial start through bankruptcy are not penalized in their professional lives unjustly. At Lipsky Lowe, we work to protect clients against bankruptcy discrimination and promote fair employment opportunities regardless of past financial struggles.

Federal Protections Against Bankruptcy Discrimination

Federal protections against bankruptcy discrimination protect individuals who have sought financial fresh starts through bankruptcy filings. The Bankruptcy Code, particularly in Section 525, explicitly prohibits discriminatory practices against those seeking bankruptcy protection. This section is divided into two essential parts:

  • Section 525(a): This provision ensures that governmental units cannot deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or similar grant to a person because the person has filed for bankruptcy, been insolvent before discharge, or has not paid a dischargeable debt.
  • Section 525(b): It extends protections into the private sector, stating that private employers cannot terminate employment or discriminate concerning employment solely because of a bankruptcy filing.

These federal laws are designed to prevent discrimination, helping individuals rebuild their lives without the added burden of unjust treatment in their professional endeavors or access to government-issued privileges. By upholding these protections, the law encourages fair and equitable treatment of those who have utilized bankruptcy laws to manage their financial challenges.

Understanding Your Rights and How To Exercise Them

Understanding your rights against bankruptcy discrimination is crucial for protecting your interests and ensuring fair treatment in various aspects of life, especially employment. Here’s how you can protect your rights:

  • Know Your Protections: Familiarize yourself with federal and local laws prohibiting bankruptcy discrimination, such as Section 525 of the Bankruptcy Code and relevant state or city statutes.
  • Document Evidence: If you suspect discrimination, keep detailed records of all related communications and actions. This documentation can be vital in proving your case.
  • Report Violations: Report any suspected discrimination to your human resources department or supervisor. You may also file a complaint with the U.S. Equal Employment Opportunity Commission (EEOC) if your rights have been violated.

If you encounter discrimination, the team at Lipsky Lowe can provide the guidance and representation needed to assert your rights effectively, ensuring that your bankruptcy filing does not unjustly impact your professional and personal opportunities.

How Our Firm Can Help

At Lipsky Lowe, we regularly defend individuals facing bankruptcy discrimination. Our experienced team understands the nuances of the Bankruptcy Code that protect you from unjust treatment due to your bankruptcy status. We offer personalized legal guidance, helping you understand your rights and the best course of action. 

Whether you’re dealing with employment discrimination or other challenges related to your bankruptcy filing, we’re here to support you every step of the way. Our experienced employment discrimination attorneys will advocate for your right to fair treatment so you can move forward confidently after bankruptcy. Trust us to be your ally in this journey.

Talk To An Experienced Bankruptcy Discrimination Attorney Today

If you’re experiencing discrimination due to your bankruptcy status, turn to Lipsky Lowe for legal support and guidance tailored to your unique situation. We can protect your rights and ensure you’re treated fairly, helping you move forward confidently and securely.