Denying a loan because of a bankruptcy filing is one thing, but refusing access to food stamps is another. A lot of people are unaware of the fact that public entities discriminating against others for bankruptcy is illegal. If you owed money to a government agency and was discharged, they must provide what you requested.
Filers will always retain the following privileges:
– Obtaining licenses or permits
– Social security and other public welfare payments
– Participating in any government program such as State Universities
– Public housing
However, this is not the case with private companies. Contrary to popular belief, they are not obligated to negotiate with clients. Depending on the situation, certain businesses take your bankruptcy filing into account if they believe it affects your ability to pay on time. Here are some examples:
– Credit card companies
– Loan providers
– Landlords that reject tenant requests due to bad credit history
– Rental, retail and other types of businesses turning away customers who fail to demonstrate that they can pay
What if I already have a house or an apartment?
The landlord can’t use a bankruptcy filing as the sole reason for eviction. However, this doesn’t stop them from denying the rental application when they run a credit check.
Can my employer fire me?
Most companies perform a background check on their candidates, which may include credit history. Recruiters from private businesses can decline your job request if they find an eyebrow-raising bankruptcy filing since there is currently no law that prevents them from doing so. What they can’t do is fire, demote, or reduce your salary simply because of your bankruptcy case.
Societal pressure plays a role in this decision. It’s not easy learning from mistakes and recovering from economic stress while everyone points fingers at you. Still, it shouldn’t be a reason to lose your job and fundamental human rights.
What makes The Law Offices of Erika Luna unique is that we will always be on your side and provide the support you need during this daunting process. Schedule your free consultation in Los Angeles today.