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Many employers use credit reports as an indicator of someones ability to handle responsibility, trustworthiness and general desire to uphold their obligations. BK would not be a good sign. However, Federal law in the United States explicitly prohibits employers from denying employment based on bankruptcy. An employer cannot deny employment based on an individual's bankruptcy, to do so would be illegal.The U.S. Bankruptcy Code contains a nondiscrimination provision that bars employers from firing or discriminating against an employee who is or has been a debtor or bankrupt "solely because" of bankruptcy. However, the law is interpreted broadly, and if an employer can find another reasonable way to fire or deny employment from you than it is legal for them to deny you employment.

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15y ago
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13y ago

Section 525 of the Bankruptcy Code does protect debtors against discriminatory treatment by both governmental employers and private employers. The Code specifically provides that employers may not terminate the employment of an individual who has been a bankruptcy debtor.

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Q: Can you lose a job for filling for bankruptcy?
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