Are employment claims exempt in bankruptcy?

Administrator — Sun, 08 May 2011 21:40:58 +0000

While there is a federal law exemption for a personal bodily injury claim, a recent court decision specifies that this would not apply to an employment law claim, such as a wrongful termination claim (MCAD in Massachusetts). The $21,625 exemption amount is available for personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss. The court in In Re: Flattery, Francine Anne, et al. (Lawyers Weekly No. 04-035-11) (7 pages) (Hoffman, J.) (USBC) (Chapter 7 Case No. 10-43964-MSH) (March 23, 2011) found that this exemption was limited to payments on account of personal bodily injury, not applicable in employment law claims.

Bankruptcy effects on government workers

Administrator — Tue, 12 May 2009 18:02:35 +0000

The state of the economy has many concerned about their jobs and futures, but one group in particular has more to lose from bad credit than others. That would be civil servants. Civil servants, including local and state law enforcement and those working on government contracts, are usually subject to not only an exhaustive criminal background check but also a credit check as a determination of their potential security risk. Often a training completion requirement might be a swift adjustment of credit status by either a repayment plan or a bankruptcy filing. Filing for bankruptcy might allow a government worker to continue in their position or commence new employment. Failing to do so might jeopardize their entire career. The first step for a civil servant contemplating bankruptcy would be to learn about the effect of a bankruptcy filing on their credit by speaking to a qualified practitioner in their jurisdiction and perhaps also learn of their workplace rights from an attorney practicing in the area of civil service employment law.

Massachusetts Bankruptcy Lawyer » employment

Are employment claims exempt in bankruptcy?

Bankruptcy effects on government workers