Can you be discriminated against if you file bankruptcy?

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.

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To our clients and community:

The Law Office of Erika Luna is committed to maintaining our employees’ safety and well-being and helping our clients do the same.


While we are closely monitoring the impact of the Coronavirus on our community, we want you to know that our telephone lines are open, and our staff is available to discuss your current case or to consult you on a potential one. 

We are currently offering a contactless bankruptcy process so people can file from the comfort of their homes. The entire process can be completed online and over phone/zoom calls. Clients can sign all paperwork electronically and attend the 341a hearing by phone. 

To arrange any in-person meetings, please call us for an appointment per the firm’s availability. We are taking substantial precautions to meet and exceed the CDC’s and state government’s guidelines for maximum protection. Please also note that your case, whether current or new, can be entirely managed remotely.

We hope you and your loved ones are safe and healthy during these challenging times. Thank you.

The Law Office of Erika Luna

A nuestros clientes y comunidad:

Nuestra firma está comprometida a mantener la seguridad y el bienestar de nuestros empleados y a ayudar a nuestros clientes a hacer lo mismo.

Mientras estamos monitoreando de cerca el impacto que el Coronavirus está teniendo en nuestra comunidad, queremos que sepa que las líneas telefónicas de nuestra oficina están abiertas y que nuestro personal está disponible para hablar sobre su caso o consultar sobre un caso posible.

Actualmente estamos ofreciendo un proceso de bancarrota sin contacto para que las personas puedan declararse desde la comodidad de sus hogares. Todo el proceso se puede completar en línea y por teléfono / llamadas con zoom. Los clientes pueden firmar todos los documentos electrónicamente y asistir a la audiencia 341a por teléfono.

Llámenos para solicitar una cita según la disponibilidad de la empresa. Estamos tomando precauciones importantes con nuestra oficina para cumplir y superar las recomendaciones de la CDC y del gobierno estatal para la máxima protección. Tenga en cuenta también que su caso, ya sea actual o nuevo, se puede manejar por completo de forma remota.

Esperamos que usted y sus seres queridos estén seguros y saludables durante estos tiempos difíciles. Gracias.

La oficina legal de Erika Luna