Will Filing Bankruptcy Affect My Ability to Get a Job?Wednesday, January 30th, 2019, 11:57 pm
If you’re considering filing bankruptcy, you want to make certain you’ve looked at all of the different angles and understand all of the consequences that come with this decision. There are times when bankruptcy is certainly the right answer, but there are still things you need to think about first. If you’re considering changing jobs, or are looking for a job, you may be wondering if bankruptcy will have any negative effects on your job search.
You Can’t Be Fired
First, relax—it’s illegal for any company to fire you because you’ve filed bankruptcy. They also cannot use your bankruptcy to demote you, cut your pay, or take away some of your current job responsibilities.
It Cannot be a Factor in the Hiring Process for Government Jobs
If you’re applying for a job with a government agency—whether it’s local, state, or federal—they cannot take your bankruptcy into account when deciding to hire you. However, if the government job you’re seeking requires a security clearance, your bankruptcy may be a factor. That’s because the government and the military see those with large amounts of debt as being at risk for blackmail. If you’re trying to join the military, you will need to meet specific financial requirements, and having a bankruptcy on file can negatively affect you.
However, this isn’t always the case. In fact, it’s possible your bankruptcy will help you because it will show that you have dealt with your high amount of debt. Overall, bankruptcy can help you move forward in joining the military or working for the government because it does reduce your debt, but it’s always best to discuss this with a military recruiter or government HR department.
Private Employers Can Pass You Over
There are no laws preventing private employers from using your bankruptcy against you. They will do a credit check, and if they see bankruptcy, they may decide not to hire you. This is especially true if you’ve applied for a job in the financial sector. Many employers are hesitant to hire someone for bookkeeping, payroll, accounting, or other related positions if they see that person can’t keep their own finances under control.
If you’re wondering about how your bankruptcy will affect you in a specific industry or area of your life, Contact Michael F. Kanzer & Associates. They can assist you with all of your questions about filing for bankruptcy.