Legal Question in Bankruptcy in North Carolina
what can happen to a federal employee if bankruptcy is declared in north carolina?
1 Answer from Attorneys
I need more facts, but generally the Bankruptcy Code protects you from being fired simply because you filed bankruptcy. 11 U.S.C. � 525:
(a) Except as provided in the Perishable Agricultural Commodities
Act, 1930, the Packers and Stockyards Act, 1921, and section 1 of
the Act entitled "An Act making appropriations for the Department
of Agriculture for the fiscal year ending June 30, 1944, and for
other purposes," approved July 12, 1943, a governmental unit may
not deny, revoke, suspend, or refuse to renew a license, permit,
charter, franchise, or other similar grant to, condition such a
grant to, discriminate with respect to such a grant against, deny
employment to, terminate the employment of, or discriminate with
respect to employment against, a person that is or has been a
debtor under this title or a bankrupt or a debtor under the
Bankruptcy Act, or another person with whom such bankrupt or debtor
has been associated, solely because such bankrupt or debtor is or
has been a debtor under this title or a bankrupt or debtor under
the Bankruptcy Act, has been insolvent before the commencement of
the case under this title, or during the case but before the debtor
is granted or denied a discharge, or has not paid a debt that is
dischargeable in the case under this title or that was discharged
under the Bankruptcy Act.
(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.
(c)(1) A governmental unit that operates a student grant or loan
program and a person engaged in a business that includes the making
of loans guaranteed or insured under a student loan program may not
deny a student grant, loan, loan guarantee, or loan insurance to a
person that is or has been a debtor under this title or a bankrupt
or debtor under the Bankruptcy Act, or another person with whom the
debtor or bankrupt has been associated, because the debtor or
bankrupt is or has been a debtor under this title or a bankrupt or
debtor under the Bankruptcy Act, has been insolvent before the
commencement of a case under this title or during the pendency of
the case but before the debtor is granted or denied a discharge, or
has not paid a debt that is dischargeable in the case under this
title or that was discharged under the Bankruptcy Act.
(2) In this section, "student loan program" means any program
operated under title IV of the Higher Education Act of 1965 or a
similar program operated under State or local law.
Related Questions & Answers
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What are the different types of bankruptcy in North Carolina? Asked 7/17/10, 8:04 am in United States North Carolina Bankruptcy Law