Section 525 deals with protection of debtors against discrimination. Section 525 is broken up into two main sections relating to two main standards: one for governmental employers and one for private employers. Let’s take a look…and note the big omission by Congress for private employers.
525(a) says a governmental unit may not:
- Deny employment to…
- Terminate the employment of…
- Discriminate re: employment against a person on basis of their bankruptcy filing.
525(b) says a private employer may not:
- Terminate the employment of…
- Discriminate re: employment against a person on basis of their bankruptcy filing.
Government cannot deny your employment because you filed bk but a private employer can! This is also how rental companies can ask you “did you file bk in past” and deny your rental application.