Question

Is it possible to be denied employment if I file for bankruptcy?

I was interviewing for a job and they ran a background check on me. Apparently, the were able to find my name on the public records for bankruptcy and because part of the job deals with financial responsibility, they did not hire me. Is it legal for them to do this?
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Answered By: Bankruptcy Law office of Bill Rubendall
Section 525 of the bankruptcy code prohibits discrimination in employment, public or private, based on filing bankruptcy. An employer can deny employment for many reasons, including financial responsibility.

Answer Applies to: California
Replied: 10/17/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Eranthe Law Firm
Yes. It is legal to have job criteria that include how you have managed your finances. This is especially relevant if the job deals with financial responsibility.

Answer Applies to: California
Replied: 10/17/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Janet A. Lawson Bankruptcy Attorney
No. Your unemployment has nothing to do with it.

Answer Applies to: California
Replied: 10/17/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: The Schreiber Law Firm
Yes, if a qualification of the job is prior history of financial responsibility.

Answer Applies to: California
Replied: 10/16/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Carballo Law Offices
Yes, if financial responsibility is reasonably related to the type of job you are seeking then you could be denied a job because of a recent bankruptcy. There are state laws that might protect your from that type of discrimination but if ability to handle your finances responsibly is reasonably related to the type of job then you could be denied employment in that kind of job, particularly if the bankruptcy was filed in the last few years. You could also be denied a job for bad credit because of the same reason and since you probably had bad credit when you filed for bankruptcy then having fled probably made little or no difference.

Answer Applies to: California
Replied: 10/14/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Law Offices of Robert P. Taylor
The law is a little unclear in this area but for the most part courts have upheld discrimination by private employers especially when the prospective employment involved finance/money management/security. The potential negative impact a bankruptcy could have on future employment/advancement opportunities is if they're professional, management types. This usually doesn't make a difference if you're a construction worker, nurse, teacher, etc.

Answer Applies to: California
Replied: 10/14/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

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