Bankruptcy and Employment | in your debt


Will bankruptcy affect my employment?

A common question our clients who are considering filing for bankruptcy ask is whether or not doing so will affect their employment.

The answer

According to 11 U.S.C. § 525, neither a government nor a private employer “may discharge or discriminate with respect to employment any person who is or has been a debtor under this title, a debtor or bankrupt in under the Bankruptcy Law, or an individual associated with such debtor or bankrupt,”

Therefore, it is clear that your employer cannot fire you or discriminate against you in any way just because you filed for bankruptcy. When asked this question, we assure our clients that federal law protects them from being fired and penalized at work solely because they filed for bankruptcy.

Job and bankruptcy?

Most of our clients are satisfied that they are protected from discrimination by their employer, but some wonder whether or not their employer should know that they are filing for bankruptcy. The answer to this question is that there is no law that says you must tell your employer directly that you have filed for bankruptcy. Some exceptions may be related to security clearances. In that case, you should refer to your employment contract for possible requirements and details of the process. Most workers do not have to sign an employment contract and therefore fortunately fall into the “non-reporting” category.

For help with this or any other matter

The attorneys at the Law Offices of Bond & Botes have spent decades helping people resolve debt and move toward a more stable financial future.

Contact us at Bond & Botes to help you through this inflationary period as we help people struggling with debt

We are local and offer a free, confidential face-to-face consultation with an experienced attorney. We also offer free consultations from the comfort and safety of your home or office by phone and/or video if you choose. Let us solve your financial problems. There’s no obligation, and that means there’s no downside to gathering the information you need to make good decisions about how to break the cycle of debt stress and move forward. We can answer all of your questions about Chapter 7 bankruptcy, Chapter 13 bankruptcy, stopping foreclosure or wage garnishment, avoiding liens, stopping lawsuits, paying off medical debt, personal loans, payday loans, credit card debt. credit etc. We can relieve your stress! We want to help you and we can help you!

Bond, Botes, Sykstus, Tanner and McNutt, P.C.



102 South Court St, Suite 314, Florence, AL 35630

Phone: 256-760-1010 • Fax: 256-760-1023

Office Hours: Monday – Friday • 8am to 5pm

It is not guaranteed that the quality of the legal services to be performed will be greater than the quality of the legal services to be performed by other lawyers.


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