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Many security agreements contain a bankruptcy policy - known as
bankruptcies acceleration clauses - that claim all notes are deemed in
default upon filing either Chapter 7 or Chapter 13. Also, many
companies, especially those engaged in financial services or providing
creditor services, implement employment policies that require penalties,
demotions, or termination of employment when filing. These policies are
illegal and completely unenforceable according to precise Code
provisions when used as the sole basis of termination. A written,
signed, sworn waiver of these rights is unenforceable, despite an
employer's clear intent to the contrary. Any employer who violates this
Code provision is liable for damages based on wrongful termination.
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