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A.J.
A.J., Attorney
Category: Bankruptcy Law
Satisfied Customers: 4300
Experience:  Experienced consumer bankruptcy attorney.
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I work at a bank, been in banking for 14 yrs and my finances

Customer Question

I work at a bank, been in banking for 14 yrs and my finances have declined....I am afraid to file bankruptcy...
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  A.J. replied 3 years ago.
Hello, and thank you for contacting Just Answer. My name is Adam, I am a bankruptcy law professional, and I look forward to answering your question.

Unfortunately, this is a very common concern for people experiencign financial difficulties. They have made the decision that bankruptcy is the best option for them, but they are concerned that it might negatively impact their ability to get or keep a job. For that concern, I have some qualified good news.

Under Federal Law, " No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt." To read the full text of the law, go to:

http://www.law.cornell.edu/uscode/text/11/525

So, as you can see, it is unlawful for an employer to discriminate against someone regarding their employment, including companies in the financial sector. Now, the only reason that I say that this is qualified good news is because, common sense tells us that if an emlpoyer decides that they do not want to employ someone who has filed for bankruptcy protection, they may be motivated to find some other reason not to keep that employee. An employee can still be terminated for other reasons, just not for having used the bankruptcy code. It is also important to keep in mind that, although a bankruptcy filing is information open to the public, unless the employer had a reason to run a new credit check on the employee, the odds are that they would not find out unless they were motivated to look for bankruptcies by employees (which would take a considerable amount of extra effort).

So, per federal law, it is unlawful to discriminate against an employee for having used the bankruptcy code. Having said that, your concern is a reasonable one, and one shared by many people. It is important to go in to a bankruptcy knowing what your rights are so that they can be enforced if necessary.

I hope this helps, and please do not hesitate to ask if you require any additional information. Otherwise, please remember to RATE my answer so that I can receive credit for my work.

Take care
Customer: replied 3 years ago.


Thank you for that answer and I have no accounts that directly tie me to the financial institution so that is at least an advantage. My next question is this, I had good credit, it is slipping because of recent inquiries, but my debt to income ratio is hurting me, so consolidation loans, unsecured loans, are all out of the question. Credit Counseling is not an option because that really only helps people that have high interest rates and lowering that inevitably cuts their payments, that's not my case. I recently refinanced my house, in an effort to free up money a month, and it did, lower interest rate, only to have my mortgage increase higher( a few months later) than before my refi because of my mortgage companies error with my escrow account!!!!! My financial situation has changed drastically but I am still able to afford my house(even though the increase in monthly payments and term) make me sick, my house and my bills associated with it. It is all credit card debt that is putting me behind the 8 ball. Any suggestions????!!!!

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