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Discrimination based on bankruptcy is illegal

With so many people having filed for bankruptcy in the current economy, it’s important to know that it’s illegal for an employer to discriminate against a worker because he or she went bankrupt. Most everyone is aware that it’s illegal to discriminate on the basis of race or sex, but few people realize that “bankruptcy discrimination” also violates federal law.

However, the law isn’t as extensive as the laws against race and sex discrimination. For instance, a federal appeals court in Philadelphia recently decided that while it’s illegal to fire someone for going bankrupt, it’s okay to refuse to hire someone because of a prior bankruptcy filing.

The court said this was true because the discrimination rules in the federal bankruptcy laws are different from the ones in the federal civil rights laws. This ruling only covers a small part of the country, though. It’s definitely wise to speak with an attorney about any concerns over bankruptcy issues.

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