Can my Boss Fire me if I File for Bankruptcy?

A common question that both my Chapter 7 and Chapter 13 bankruptcy clients ask is: Can my boss fire me if I file for bankruptcy in Georgia? Bankruptcy is often an emotionally draining process, filled with uncertainty about one’s short and long-term financial future, so for the bankruptcy client, the threat of unemployment is especially frightening. Recent news reports indicate that the “Great Recession” has hit Atlanta especially hard. Often times, debtors file bankruptcy in the first place to protect crucial income and avoid garnishment of their wages, making a bankruptcy even scarier if it is likely to cost them their job. With high unemployment rates both in Georgia throughout the country, debtors have very real fears about whether they will be able to find a new job in the event of job loss.

Luckily, there is some good news. The Bankruptcy Code, which is the law that sets out the rules and requirements for a consumer bankruptcy in Georgia and other states (people filing bankruptcy under Chapter 7 or Chapter 13), contains an Antidiscrimination Provision in 11 U.S.C. §525(b). This states that:

“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 bankruptcy 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 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.”

Under this law, private employers are prohibited from firing and employee or denying employment to parties who have filed bankruptcy. It is illegal for them to do so. However, some employers obtain credit reports of potential employees as a screening method before hiring. If you work in financially related industries such as banking or you are applying for a position where you will be handling money (bookkeeper, accountant, payroll), this is especially common and something to take into account as you make the decision whether or not to file.

If you are facing garnishment or foreclosure and considering bankruptcy, it is crucial to consult an attorney experienced in bankruptcy matters who to help you evaluate your individual situation and explain your legal options. For a complimentary consultation please contact The Law Offices of Charles Clapp at (404) 585-0040 to schedule a free consultation.


Charles is absolutely a brilliant attorney! He is a critical thinker and determined problem solver. He is very accessible, even via text. If he is in court, his ability to multi-task, you can feel safe and secure in knowing he is handling any issues or concerns. I entrust him with my future, he is a uniquely talented attorney who always challenges himself to achieve the absolute best outcome for his clients.



I was very satisfied with Mr. Clapp services. He is a man of his word and did everything he told me he would. I would highly recommend him.



I came to Mr. Clapp by referral with a complicated case involving both personal and business debts that were out of control. Mr. Clapp evaluated the situation and gave me options that I was not even aware of. He knows his stuff, executed flawlessly, and I have been able to start over. I highly recommend Charles Clapp if you have debt or bankruptcy issues. Listen to his advice, he knows his stuff. I consulted with several other bankruptcy attorneys prior to retaining Mr. Clapp, and they did not have the same breadth of knowledge that Mr. Clapp brought to my case.



I selected Charles Clapp to handle my bankruptcy based on his already positive reviews and I am glad that I did! He was very accommodating to my schedule and made my negative life experience positive. I was actually very surprised how easy he made the process. Life happens and it’s great to be represented by someone that understand that!!! Stop your attorney search with Charles Clapp!!!