Bankruptcy and Discrimination
In most cases, you cannot be discriminated against because you filed for
bankruptcy protection. There are agencies and businesses that may not deny, suspend,
or revoke opportunities or privileges because of a bankruptcy filing.
Yet, keep in mind there are a few establishments where rules are not as
strict depending on the entity.
It is illegal for local, state, and federal government units to discriminate
someone because they filed bankruptcy. This includes a wide range of agencies
but to give a general idea, you can’t be denied or lose public benefits,
get evicted or denied public housing, or be excluded from a mortgage finance
program ran by the state.
You can’t be denied or excluded from a government-guaranteed student
loan program, denied a driver’s license or even your college transcripts.
Those seeking business-related transactions should not be denied or refused
a liquor license by your state or a contract (such as for construction
or other project purposes).
If you had debts discharged that were government-related you should not
have any problems in moving forward. Such an example may include a driver’s
license suspension related to a car accident with a civil judgment that
qualified for discharge. If the debt was eliminated you should be granted
Some private entities may not have as many prohibitions as government entities.
These include those that may check your credit history such as a landlord
or potential employer. If you are employed or already renting, you cannot
be fired or evicted because you filed bankruptcy.