Bankruptcy And Discrimination

Bankruptcy is a legal procedure offered to people whose debts are overwhelming to the point where resolution without intervention from the legal system is impossible. The types of resolutions worked out between the debtor—be it persons or businesses—and the legal system can vary based on the type of bankruptcy being filed. Filing bankruptcy can be a lifesaving option for people with no hope of pulling themselves out of the financial situation they have found themselves in. Bankruptcy, like many legal processes, is never an easy decision—and certainly not one that can be carried out without proper representation and counsel. While bankruptcy can help shed some of the debt owed to collectors, there are ramifications that follow the process; it will be reported on a person's credit report for up to ten years, making it difficult to obtain a loan. Many find that home mortgages or car loans are not easy to come by after filing bankruptcy. However, there are certain privileges that must be granted—or at least considered—to the bankrupt.

Bankruptcy is a complex and difficult decision, but there are supports built into the law for anyone who finds that bankruptcy is their most viable option. Although certain credit may be difficult to come by from the banks, it is illegal for other agencies to discriminate against someone just because they have filed bankruptcy in the past. Unfortunately, though, bankruptcy discrimination has occurred in prior times.

When bankruptcy discrimination does occur, it makes it nearly impossible for people to take full advantage of their new beginning, so it's important for those considering bankruptcy to become fully knowledgeable on the rights they have protected under law.

For those considering bankruptcy and the possible discrimination that could follow, it is important to remember that federal law clearly states the bankrupt can not be denied or evicted from public housing, denied employment, or denied a driver's license just because they have filed bankruptcy.
Similarly, employment status and previously obtained licenses and certifications can not be altered just because bankruptcy has been filed. In no way can the bankrupt be treated unequally, denied promotions, or be terminated based on the filing of bankruptcy. Laws protecting the bankrupt are in place to avoid such scenarios from happening, and that's because the idea is to give debtors a fresh start—to help them stand not in a financial hole, but on a level ground as far as debt and finances are concerned. A fresh start will be nearly impossible if every job advancement and opening is not available to those who have filed bankruptcy. Instead, with the bankrupt being considered for employment advancement, there is the increased chance of financial freedom. The advantages of that freedom are many, including the repayment of non-exempt debts to collectors. Without financial freedom, the bankrupt have a difficult time reintegrating themselves into constructive society.

Part of bankruptcy anti-discrimination is educating the general public on the idea that just because someone has filed bankruptcy, that person is not necessarily immoral, irresponsible, or looking for a free ride. Although the bankruptcy system is as open to abuse as any other, the preconception that only those who act irresponsible become bankrupt is not true in every case. Very often the bankrupt fall into financial disrepair due to circumstances outside of their control, like job loss, medical bills, irreconcilable family problems, and even death. In the aforementioned circumstances, bankruptcy helps people get back on their feet, and returns them to their status as productive, bill-paying citizens. And anytime that status can be obtained, it is the duty of the courts, employers and individuals to take full advantage.

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