CAN AN EMPLOYER
TERMINATE A DEBTOR’S EMPLOYMENT SOLELY BECAUSE THE PERSON WAS A
DEBTOR OR FAILED TO PAY A DISCHARGED DEBT?
The law provides express prohibitions
against discriminatory treatment of debtors by both governmental
units and private employers. A governmental unit or private
employer may not discriminate against a person solely because the
person was a debtor, was insolvent before or during the case, or
has not paid a debt that was discharged in the case. The law
prohibits the following forms of governmental discrimination:
terminating an employee; discriminating with respect to hiring; or
denying, revoking, suspending, or declining to renew a license,
franchise, or similar privilege. A private employer may not
discriminate with respect to employment if the discrimination is
based solely upon the bankruptcy filing.