Can I Be Discriminated Against For Filing Bankruptcy?

Hello, Long Island neighbors! If you’re considering filing for bankruptcy, you might be wondering, “Can I be discriminated against for filing bankruptcy?” The thought of being treated unfairly because of a bankruptcy filing can be concerning, but federal laws are in place to protect you. At The Law Offices of Adam C. Gomerman, we’ve been helping Long Islanders understand their rights and navigate bankruptcy laws since 1991. Let’s explore what bankruptcy discrimination is, how the law protects you, and what to do if you face discrimination.

The Short Answer: No, You Cannot Be Discriminated Against for Filing Bankruptcy

Filing for bankruptcy is a legal process designed to provide debt relief and a fresh financial start. Under federal law, you cannot be discriminated against because you filed for bankruptcy. The Bankruptcy Code (specifically, 11 U.S. Code § 525) prohibits both government and private entities from treating you unfairly solely because of your bankruptcy filing.

Protections Under the Law

The law protects you from discrimination in several key areas. Let’s break them down.

Government Agencies

Government agencies cannot deny you benefits, licenses, permits, or other services because of a bankruptcy filing. For example:

• Public Benefits: Bankruptcy cannot be used as a reason to deny unemployment benefits, housing assistance, or other public aid.
• Licensing: You cannot be denied a professional license, such as for teaching, nursing, or law, because you filed for bankruptcy.
• Employment with the Government: Federal, state, and local government employers cannot refuse to hire or promote you based on your bankruptcy filing.

Private Employers

While private employers cannot terminate your employment or discriminate against you in other ways because of bankruptcy, they are allowed to consider your credit history when hiring. This is different from outright discrimination and is typically used for positions involving financial responsibility.

Utility Services

Utility companies cannot deny you access to essential services like electricity, water, and gas because of a bankruptcy filing. However, they may require a security deposit to continue providing service.

Student Loans and Education

While bankruptcy itself does not discharge most student loans, schools and lenders cannot deny you access to federal student loans or financial aid programs because of a past bankruptcy.

Housing

Landlords cannot evict you or deny you a rental lease solely because of a bankruptcy filing. However, they can consider your credit score and rental history when evaluating your application.

What Bankruptcy Cannot Protect Against

While the law prevents discrimination based solely on your bankruptcy, there are some areas where your financial history may still have an impact:

• Credit Applications: Lenders may consider your bankruptcy when evaluating loan or credit card applications, often resulting in higher interest rates or stricter terms.
• Private Housing: Private landlords may use your credit history as part of the decision-making process for renting.
• Hiring in Financial Industries: Employers in fields like banking or finance may weigh your bankruptcy when hiring for positions that require managing money.

What to Do If You Experience Discrimination

If you believe you’ve been discriminated against because of your bankruptcy filing, here are the steps to take:

1. Document the Incident: Write down the details of what happened, including who was involved, what was said, and any actions taken.
2. Review Your Rights: Familiarize yourself with the protections under 11 U.S. Code § 525.
3. Contact Your Bankruptcy Attorney: Your attorney can help you determine whether the discrimination violates federal law and advise you on the next steps.
4. File a Complaint: If necessary, file a complaint with the appropriate government agency or take legal action.

At The Law Offices of Adam C. Gomerman, we’re here to advocate for your rights and help you address any discrimination you may encounter.

Why Choose The Law Offices of Adam C. Gomerman?

For over 30 years, we’ve helped thousands of Long Islanders navigate bankruptcy and protect their rights. Here’s why you can trust us:

• Experience: Decades of expertise in bankruptcy law and client advocacy.
• Personal Attention: We treat every client with care and respect, ensuring your questions are answered and concerns addressed.
• Proven Results: We’ve successfully guided clients through complex bankruptcy issues while safeguarding their rights.

Remember, if we can’t help you, nobody can.

Take the First Step Toward a Fresh Start

Filing for bankruptcy is a tool for financial recovery, and you have rights protected by federal law. If you’re considering bankruptcy or have concerns about discrimination, we’re here to guide you every step of the way.

Schedule a free consultation with our experienced bankruptcy attorney in Long Island.

Final Thoughts

The law is clear: you cannot be discriminated against for filing bankruptcy. Whether you’re dealing with government agencies, employers, or utility companies, protections are in place to ensure fair treatment. At The Law Offices of Adam C. Gomerman, we’re committed to protecting your rights and helping you achieve financial stability.

Don’t let concerns about discrimination stop you from seeking the debt relief you deserve. Reach out to us today, and let’s work together to secure your fresh start and financial future.