Does Bankruptcy Affect Your Employment With Homeland Security?
Federal law created bankruptcy as a solution for people with out-of-control debt. Since it is federally created, government agencies generally cannot discriminate against you for taking advantage of it. In fact, bankruptcy law explicitly prohibits agencies such as the Department of Homeland Security from engaging in any discriminatory employment practices, including refusing to hire someone or terminating someone, when the discrimination is solely based on a bankruptcy filing.
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Public Policy
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Employment discrimination by government employers such as the Department of Homeland Security violates federal law and undermines public policy when such discrimination hinges solely on a party's bankruptcy filing. Historically, a creditor could kill a person or send him to prison for not paying his debts. Fortunately, this country's founders recognized the injustice of such harsh penalties, especially as they applied to well-intentioned debtors whose misfortunes rendered them incapable of paying their debts. The U.S. Constitution empowered Congress to create this country's bankruptcy laws and thereby provide relief for overwhelmed debtors. In keeping with this aim, bankruptcy law makes it unlawful for government units, including the Department of Homeland Security, to discriminate against a person who seeks bankruptcy relief.
Department of Homeland Security
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The Department of Homeland Security is a governmental unit; accordingly, it may not discriminate against an employee for seeking bankruptcy protection. The Department of Homeland Security employs more than 230,000 individuals. Its primary goal is to protect the country from threats such as terrorism. The agency employs workers to protect the air, borders, waterways and even cyberspace from forces attempting to undermine public safety. The bankruptcy code protects these workers from employment discrimination that is based solely on their filing for bankruptcy.
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Remedies
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Congress is very clear about the consequences for violating certain aspects of the bankruptcy code. For example, the code explicitly states that willful violations of the automatic stay, which is a provision protecting debtors from collection activities, will result in money damages. However, the portion of the bankruptcy code that makes a governmental unit's bankruptcy discrimination illegal does not specify the consequences for violating the law. Bankruptcy law does, however, provide bankruptcy judges with wide discretion "issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title." In other words, you may be relatively created when asking the court to remedy discrimination problems.
Warning
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The bankruptcy code does not shield you from all bankruptcy related employment discrimination. The Department of Homeland Security may not discriminate against you solely on the basis of your bankruptcy. However, your bankruptcy filing could prompt hiring agents to seek out alternate justifications for denying or terminating your employment. Generally, so long as an employer can articulate a non-bankruptcy-related justification for its conduct, it can successfully defend against a lawsuit alleging bankruptcy discrimination. It's also worth noting that bankruptcy law does not technically protect those discriminated against for thinking about or planning to file bankruptcy, it only protects those who have already filed. While this may seem ridiculous, you may want to keep your bankruptcy plans to yourself.
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