Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Employers are forbidden - by the Bankruptcy Code - to not hire someone because that person has filed a Bankruptcy. Bankruptcy Stat. 525.
Aside from this prohibition, it is true that an employer would be more concerned about debts that are delinquent than a Bankruptcy, as delinquent debt means the creditor can get a judgment, which can be used to garnish the employee's wages. Employers generally do not like to garnish wages - as it is time consuming.
A lot of customers ask that question, and the answer is it is actually not possible to know whether employers base employment decisions on whether someone has filed a Bankruptcy, even if they do, as they are not going to admit this.
However, if I were am employer, I would prefer to hire someone who was insightful enough to file a Bankruptcy, to take care of their financial affairs, than someone who had debts they are not doing about.
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