Legal Question in Bankruptcy in North Carolina

what can happen to a federal employee if bankruptcy is declared in north carolina?


Asked on 7/31/10, 6:40 pm

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.

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Answered on 8/06/10, 9:35 pm


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