Does bankruptcy affect getting a job offer
Declaring bankruptcy has deadly impact on your employment life, but then a person has got to do what they have to do, don’t they? It is important that you understand its impact, before filing for bankruptcy. In this article, we shall discuss the impact of declaring bankruptcy on your working life.
Many people across the globe are affected by the financial crunch. Some are finding it difficult to cope with the creditors’ pressures, while others have already given up and opted to embrace bankruptcy.
Do you have to talk about your Bankruptcy to your employer? Under normal circumstances, there is no need of telling your employer. But on the other side, it is wise to check keenly what your employment terms and conditions say about financial crisis. This is likely to apply to those working in a financial institution such as a bank or insurance house or with such a role.
How Employers Know about Bankruptcy Filings
It is very hard for your employers to know about your Chapter 7 bankruptcy filings. If your creditors took you to court and acquired a judgement to start garnishing your wages, your employer will definitely find out. Declaring bankruptcy will stop wage garnishment and certainly, the payroll department will be notified. Since your employers already know what you are going through, they will probably embrace the bankruptcy move as a way to protect you.
Your company will probably learn about your financial problems if you file for the Chapter 13 bankruptcy. For those with regular jobs, the judging authority may pass an income deduction order. This means your Chapter 13 payments will be deducted from your wage and be sent directly to the court.
So will you lose your Job when you embrace bankruptcy?
As we mentioned before, being bankrupt should not affect your employment. According to the law, your boss should not under any case discriminate against you, change your compensation, fire or demote you due to bankruptcy. It is illegal and in case you become a victim, you should consult a bankruptcy attorney. Nonetheless, this is not always the case if:
- You are working in a regulated environment that needs you to be registered
- You are a liquidation professional
- Private employers can decide to employ you or not based on your financial history. Many employers prefer to hire someone without bankruptcy history while others may not take that into account.
- You have a registered role in the gambling market like a croupier or a dealer
Even if you keep your job, bankruptcy will cause other employment problems like:
- Your employers may choose to place limits on the type of work you do
- It might be overwhelming to find an employment opportunity in civil service or in the security industry in future. Most jobs require security clearances, especially when tackling sensitive issues like security, children and legal matters. It is hard for anyone with a recent bankruptcy history to apply to such a vacancy.
However, the government may choose to provide security clearance to a citizen coming out of these financial difficulties because it is impossible for such a person to become a security threat resulting from huge debts. Besides that, it is the government’s responsibility to avoid any form of discrimination as well.
How to Know if an employer used your bankruptcy against you
If you suspect that bankruptcy is the reason why a company failed to hire you, it is worth calling and enquiring if your credit worthiness or unworthiness was the issue and particularly where. If this is the reason, contract the USA Federal Trade Commission’s Consumer Response Center and file a complaint with EEOC. You can also prefer consulting your lawyer or the nearby consumer protection agency. However, do not expect your lawyer to do much. Instead, try to convince your interviewer otherwise. Whether you have declared bankruptcy or not, you still have a right to be employed and to continue with your life.
Tips for getting a job offer after bankruptcy
If you are on job after going bankrupt, all is not lost. Your credit record may be a black mark but not your defining characteristic in regard to job searching. Some tips to improve the chances of your dream job after welcoming bankruptcy include:
Be candidly open about your bankruptcy
If you have a background check released, find out whether it is a credit check. If this is the case, give your potential employer a brief explanation on the same issue
Know your rights
It is illegal for employers to ask you about your bad credit. If you feel discriminated against based on bankruptcy, engage the services of a lawyer. In the US, even when you are a prisoner, you still have rights, leave alone being bankrupt.
Have a few recommendations
Giving professional recommendations is the most reliable way to show you are trustworthy. Every employer wants to hire a person that they feel can give them value for their money.
Well, your case is not hopeless. Many institutions are just interested in your financial history if you have a money-handling role.
My name is Craig R. Chlarson. Whether you are seeking to eliminate your debt, typically through a chapter 7 filing, or whether you are seeking to reorganize your debt, typically through a chapter 13 filing, or even if you have basic bankruptcy questions, call me today. I can help you.
To schedule an appointment, call (435) 901-3449
Schedule Your Free Consultation
299 South Main Street
13th Floor, Wells Fargo Tower
Salt Lake City, UTAH 84111
P | (435) 901-3449
F | (801) 961-4001