Will Filing for Bankruptcy Affect Future Employment Options?

Bankruptcy is meant to provide a debtor with a fresh start in life. However bankruptcy can affect your life in many ways. Bankruptcy can affect your employment prospects in some situations.

Credit Report

Bankruptcy remains on your credit for ten years. Your credit scores will drop substantially if you have been through any type of bankruptcy. These days when you apply for a job, most employers will do a background check and in some cases, this will include a credit report check. Many employers equate credit problems with character deficiencies.

Anti-Discrimination Laws

By law bankruptcy alone cannot be a reason for disqualification or discrimination during the job application process. The Bankruptcy Code, at 11 U.S.C. sec. 525(b) provides that "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, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt." There are legitimate concerns when it comes to financial, government, security and other job industries. These jobs generally require clean criminal and credit records.

Clean Up Your Act

Even with bankruptcy on your credit report, you can still get the job if your credit report indicates that you are cleaning up the items that appear on your credit report. Employers will be more interested in knowing that you have eliminated your debt problem than the fact that you filed bankruptcy. An employer wants an employee to concentrate on the job and not be distracted by collection calls, wage garnishments and the worries of paying old bills.

You should demonstrate that you are making attempts to re-establish good credit and also show that you have the ability to manage your finances properly. Most employers are aware that, especially in today’s world, hard times fall on everyone. So it is important that you let the employer know that you recognized a situation that you could no longer handle and took responsibility for it. Never lie about your bankruptcy to a prospective employer. It will do you more harm than good.

Once the employer recognizes that you took responsibility for your situation and you have and are continuing to make efforts to improve your situation, the employer might have a new found respect for you.

Getting Legal Help

Consult an experienced bankruptcy attorney. The attorney can guide you through the process of getting a job after bankruptcy. He or she will explain your rights against discrimination and how to enforce your rights if the need arises.

Think Bankruptcy Might Be for You?