Bank Employee Hiring Prohibited by Bankruptcy?
by Randy Carey, BOL Guru Guru Bio
Question: Are there any federal or state laws that prohibit a bank from hiring a potential employee due to a personal bankruptcy?
Answer: Just the contrary. The U.S. Bankruptcy Code – Section 525 – covers any employer and prohibits discrimination based upon bankruptcy history or bankruptcy claim filing status.
TITLE 11 > CHAPTER 5 > SUBCHAPTER II > § 525(b) 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—
(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act;
(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or
(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.
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