Bankruptcy Indiana

One of thetop ten myths about bankruptcy in Indiana is this: You will be fired if you file bankruptcy in Indiana and never hired again.” In my 2010 book on debunking myths, I focused on one fact: It’s illegal to terminate someone based solely on a bankruptcy.
 
“Sez who?” The federal bankruptcy code is very explicit: “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.”

All the good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices have been asked the question over and over again:  Will filing personal bankruptcy in Indiana cause me to lose my job?  And, in the twenty-four years I’ve practiced as a debt consolidation lawyer and lawyer for bankruptcy in Indianapolis, clients have expressed this fear to me again and again.

One point I need to emphasize when providing bankruptcy information in Indiana is that ours is an “employment at will” state. What that means is that employers do not have to have a reason for letting employees go.  On the other hand, as one of the Columbus bankruptcy lawyers who is my associate keeps reminding clients, no employer is allowed to unfairly discriminate against particular employees by reason of their age, gender, race, or – their bankruptcy!

Remember, I say to clients wrestling with a decision of whether to file individual bankruptcy in Indiana: your employer will not be notified automatically that you have filed bankruptcy.  If you keep your personal life details to yourself in your workplace, in all likelihood, your employer will not know.  On the other hand, should you choose not to file, your employer may find out when your wages or garnished. 

The law that specifically applies to private employers is Section 525(b), preventing discrimination against employees because of bankruptcy.  In the real world, it can be difficult to prove that a firing or layoff happened because of a bankruptcy.

It’s a difficult situation.  Making a successful comeback after bankruptcy takes income from a job.  People struggling financially need to keep their jobs.  Employers need good work performance and experience, and would often rather hang on to good employers than start over with new ones. The best secret of job protection may consist simply of doing the best job!

Bankruptcy is meant to help solve problems, not create them.