Get connected with a counselor today!

Can I be fired for declaring bankruptcy?

According to the federal Bankruptcy Code, you cannot be fired solely for filing bankruptcy, regardless of whether you work for a private or government employer. Additionally, declaring bankruptcy won’t automatically cause you to lose security clearance.

If you file Chapter 13 bankruptcy, your employer will receive notification that you filed, since your payments must be deducted from payroll. However, it’s illegal for your employer to penalize you with a pay decrease, a demotion or termination, strictly as a penalty for filing bankruptcy.