Bankruptcy Code

Bankruptcy is a legal declaration that allows some debtors to discharge their unsecured debts. The text of this statute is provided as general information to the public. It may be amended, revised, or rescinded at any time without notice. This information is not intended to be legal advice. For more information, please see our disclaimer.

11 U.S.C. § 525. Protection against discriminatory treatment

(a) Except as provided in the Perishable Agricultural Commodities Act, 1930 [7 USCS §§ 499a et seq.], the Packers and Stockyards Act, 1921 [7 USCS §§ 181 et seq.], and section 1 of the Act entitled "An Act making appropriations for the Department of Agriculture for the fiscal year ending June 30, 1944, and for other purposes," approved July 12, 1943 [7 USCS § 204], a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title [11 USCS §§ 101 et seq.] or a bankrupt or a debtor under the Bankruptcy Act or another person with whom such bankrupt or debtor has been associated, solely because such bankrupt or debtor is or has been a debtor under this title [11 USCS §§ 101 et seq.] or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of the case under this title [11 USCS §§ 101 et seq.], or during the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title [11 USCS §§ 101 et seq.] or that was discharged under the Bankruptcy Act.

(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title [11 USCS §§ 101 et seq.], a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt--
(1) is or has been a debtor under this title [11 USCS §§ 101 et seq.] or a debtor or bankrupt under the Bankruptcy Act;
(2) has been insolvent before the commencement of a case under this title [11 USCS §§ 101 et seq.] or during the case but before the grant or denial of a discharge; or
(3) has not paid a debt that is dischargeable in a case under this title [11 USCS §§ 101 et seq.] or that was discharged under the Bankruptcy Act.

(c) (1) A governmental unit that operates a student grant or loan program and a person engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not deny a student grant, loan, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
(2) In this section, "student loan program" means any program operated under title IV of the Higher Education Act of 1965 [20 USCS §§ 1071 et seq., 1087a et seq., or 1087aa et seq.] or a similar program operated under State or local law.