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Should I tell my employer that I am considering filing bankruptcy?

No. You naturally may be tempted to “feel out” your employer concerning your decision to file bankruptcy. This would be a mistake as 11 U.S.C. Sec. 525(b) prohibits a private employer from terminating or discriminating concerning employment against an individual employee that “is or has been” a debtor in a bankruptcy proceeding. Most courts hold that this protection does not protect an employee that is only considering filing bankruptcy. Therefore, if you tell your employer you are considering filing bankruptcy you may be fired as you are not yet protected by the antidiscrimination protection afforded those that are “in or have been” a debtor in bankruptcy. This is especially true if you owe your employer money. Similar, but broader, antidiscrimination protection is afforded to government employees under 11 U.S.C. Sec. 525(a).

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