[CLBS] Refusing to hire a person due to filed bankruptcy

[Sarah Bratton]

If they are contemplating filing then they haven't filed and therefore
bankruptcy code wouldn't really apply.

The better question is can they deny employment based on bad credit? Or can
they even do a credit check?

http://www.nolo.com/legal-encyclopedia/running-credit-checks-applicants-35457.html

So in Idaho the answer is yes they can do a credit check. I think to deny
employment they would need a correlation to credit. Say, a night auditor
who is alone with money, high ability to embezzle money, high risk because
high debt so it's ok to deny employment.

In such cases it would be better to file the bankruptcy and then apply. In
fact I have found with jobs that require security clearance, individuals
don't qualify prior to filing but will after filing. When you don't have
the pressures of debt you aren't as easily bribable.

No case law I have ever seen though. Hope that helps.

Sarah Bratton


On May 26, 2017 4:38 PM, "Christopher Williams" <chris at martellelaw.com>
wrote:

In Idaho, may an employer refuse to hire a person because they are
contemplating filing bankruptcy?

I know under 525(b), they are prevented from firing a person for filing.  I
also know the courts are split on whether an employer may refuse to hire a
person that has already filed.

Any advice or authority would be appreciated.

Christopher Williams, Attorney
Martelle and Associates, P.A.
A BBB "A+" Rated Law Firm
Tel: 208-938-8500
Fax: 208-938-8503
www.martellelaw.com<http://www.martellelaw.com/>

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