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Consumer Bankruptcy : Chapter 7, Chapter 13, Protection From Claims of Creditors
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  #1  
Old 06-13-2003, 09:34 PM
gtten
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Losing job


What is the name of your state? Colorado

I have been working for the federal goverment since 4/2002.
At that time they ask for personal information, to perform a background check. About a week ago, they ask me again for my private information, because apparently they lost all the paperwork from my 1st background check. The only difference this time, I recently filed for chapter 7 bankruptcy. Can I lose my federal job, because of bankruptcy? According to them, because of my security clearance, if I would to have financial problems, I could lose my job. I did not have a financial problem when I gave them my paperwork the 1st time, and it's not really my fault that they lost it.
Can they fire me?

Last edited by gtten; 06-16-2003 at 09:22 PM.
  #2  
Old 06-15-2003, 08:45 AM
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Join Date: Feb 2002
Location: Nashville,TN
Posts: 15,706
Generally, the Bankruptcy Act prohibits discrimination or termination just because you file for bankruptcy:

'Sec. 525. - Protection against discriminatory treatment


(a)
Except as provided in the Perishable Agricultural Commodities Act, 1930, the Packers and Stockyards Act, 1921, and section 1 of the Act entitled ''An Act making appropriations for the Department of Agriculture for the fiscal year ending June 30, 1944, and for other purposes,'' approved July 12, 1943, a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title or a bankrupt or a debtor under the Bankruptcy Act, or another person with whom such bankrupt or debtor has been associated, solely because such bankrupt or debtor is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of the case under this title, or during the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.

(b)
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, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt -

(1)
is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act;

(2)
has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or

(3)
has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.

(c)


(1)
A governmental unit that operates a student grant or loan program and a person engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not deny a grant, loan, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act. "

I'm not sure if this covers ALL govenrment units however. If you have a contract, you should go back to it or if there's someone you can check with I'd certainly do so.
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  #3  
Old 06-15-2003, 10:16 AM
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Join Date: Feb 2003
Posts: 821
Yes, you could lose your federal job is you have a secret or higher clearance. Most agencies, if you are valuable to them, will try to find a position foryou that does not require a clearance. Obviously if you are with a law enforcement agency you'll have a much more difficult time.
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