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Employee Rights and Information Center
Employee Bankruptcy and Lawsuits

Note: If you are currently pursuing or plan to bring a lawsuit against your employer, or have filed a claim with an administrative agency such as the EEOC, it is extremely important to consult with your lawyer (both your employment lawyer and your bankruptcy lawyer, if you have one) before filing for bankruptcy. This move will have extremely important consequences for your claim against your employer, so it is critical that your attorneys be aware of your plan to file for bankruptcy and have an opportunity to fully advise you how filing for bankruptcy will affect your employment case.

If you have already filed for bankruptcy and have not yet told your bankruptcy and employment lawyers, it is very critical that you do so immediately, as you and your attorneys must act promptly to try to minimize the consequences of the bankruptcy filing. The longer that you delay, the more likely it is that your actions may be viewed as an attempt to mislead or defraud the bankruptcy court, which could cost you the ability to pursue your employment case.


Having to file for bankruptcy during a dispute with your employer, or former employer, is an all too real possibility. After all, you likely would not be suing if you were getting the money you deserved. While the effects of bankruptcy may seem complicated at first, the basic rule is that your creditors take precedence. To learn more about bankruptcy and how it may affect your lawsuit, read below:

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The content on this page was provided by Linda Correia.

If you have questions about or need help with your legal rights, contact Outten & Golden LLP.