In our troubled economic times, you may be considering bankruptcy to recover your financial footing, but you may also be worried about its impact on your future. After you clear your debts and get a fresh start, you will still need to live your life, and that includes holding a job, and probably getting several new jobs in the future! So do you need to worry about how bankruptcy will impact that?
Will an Employer care about a Bankruptcy on My Credit Report?
Some employers require a credit report from all prospective new hires. If you are required to allow this for a job your are applying for, the employer will see that you filed for bankruptcy. (A bankruptcy stays on your credit report for several years.) However, whether or not they see a bankruptcy as a negative is actually up for some debate.
If you filed for bankruptcy in the past, and since then have paid your bills and your credit report exhibits a new pattern of stability in your finances, it could show your employer that you were able to fix a bad situation. It will also show them that you aren’t currently facing any severe debts. This could potentially mean you are less likely for risky behavior or embezzlement, since your debts are so low.
However, some employers may decide that a bankruptcy is a negative, and they can get that information from your credit report. Obviously this view of bankruptcy is unfair, and the employer should educate themselves on the causes of bankruptcy and why our bankruptcy laws exist, but you may not get the chance to tell them that. The employer must get your permission to view your credit report, so you will know if they have seen this information. If you feel your application is going well, but after a positive interview you are suddenly rejected, you may fear that your bankruptcy was the cause. Your best course of action may be to try to follow up with the employer to discuss why you were rejected, and potentially discuss your situation.
Jobs that Discriminate against Bankruptcy
Is it illegal for an employer to discriminate against someone who has filed bankruptcy?> When you are filing for bankruptcy, you should speak to your attorney about discrimination laws in your state regarding bankruptcy. Laws vary from place to place, so getting the answer from a local attorney is critical. It will help you in your job hunt to know this information, so be sure to ask!
Now that you know a little bit more about how bankruptcy can hurt your chances of getting a job, be sure to browse our Life After Bankruptcy Answers to learn more about what you will face after bankruptcy. One popular topic is Can I Rent an Apartment if I File for Bankruptcy? Take heart in the fact that thousands of Americans have gone through this process before you, and it is indeed possible to come through to build a better, more stable life than you had before.