When Bankruptcy Precludes Employment Claims

Law360, New York (December 3, 2012, 11:32 AM EST) -- A common interrogatory or deposition question often posed to a plaintiff in an employment lawsuit is: “Have you filed for bankruptcy, and if so, when?” This question is not academic. The answer, in fact, could have significant implications for the prosecution of an employment lawsuit, including dismissal of the lawsuit or requiring substitution of parties.

The case law is consistent — a bankruptcy filing fundamentally alters the judicial standing of the employee plaintiff to proceed with an employment discrimination lawsuit. A recent decision from the Sixth...
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