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Prohibition of Discrimination of Bankruptcy Debtors

The bankruptcy code specifically prohibits the government from discriminating against an individual due to the filing of a bankruptcy case or based on a debt that was discharged or included in a bankruptcy case. Also, the government cannot discriminate against someone who is associated with another who filed for bankruptcy protection. More specifically, the government cannot discriminate against a debtor with regard to employment, including termination of employment and denial of employment.

The government cannot deny a person a license or permit based on having filed for bankruptcy protection. Also, the government may not discriminate against a debtor in connection with any benefits that are provided by the government, such as housing, disability, unemployment, etc.

The government is not permitted to deny a person a government student loan or student grant based on having filed for bankruptcy. This also, includes any entity that provides a student loan that is guaranteed or insured by the government.

A utility company may not discriminate against an individual who has filed for bankruptcy, with regard to terminating or restoring service.

The bankruptcy code also prohibits private employers from terminating employment or discriminating against individuals based on the filing of bankruptcy case. However, since the code does not specifically prohibit the denial of employment for private employers, as it does regarding government employers, some courts believe that the code does not prohibit a private employer from denying employment based on having filed for bankruptcy.

Please contact NJ bankruptcy attorney Robert Manchel at (866) 503-5655 to discuss your rights.

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