Posts Tagged ‘Bankruptcy and employment’

Do Bankruptcy Filings Affect Employment Opportunities?

Bankruptcy filings do affect current jobs and future employment opportunities quite adversely. After all, the records remain on your credit report for the next ten years. Most employers these days prefer to review credit reports of applicants before hiring them on specific positions. Therefore, if you are considering filing your petition for bankruptcy and are worried about its consequences related to employment and job, it is completely natural. Having said that, there are many specific provisions in the bankruptcy code to protect bankrupt individuals in matters related to employment in the private and public sector.

Public Sector Jobs

People who have been declared as bankrupt by court and now seeking jobs in the public sector though have the right not to get discriminated just on the basis of bankruptcy record, the laws allow employers to do a thorough investigation. As part of their investigation on bankruptcy filings, they are very much likely to ask you certain questions that you may find quite embarrassing to answer. The situation can be very difficult for you if you have applied for a position where security clearance is a condition. It is important for you to understand that you cannot be denied a job just on the basis of bankruptcy discharge. The final decision of the employer must be based on the result of the investigation. Some possible questions that you may be asked to answer include questions about the reason that led to bankruptcy, whether you were financially irresponsible, whether there were mitigating circumstances, and an array of other such things.

Private Sector Jobs

Any discrimination against job seekers on the basis of bankruptcy filings is strictly prohibited as per the Section 525 of the U.S. Bankruptcy Code. Just because you have failed to repay some of your debts or because the circumstances forced you to go for insolvency or bankruptcy, it must not have any impact on the employer’s decision to hire you, especially if you are otherwise qualified for the position you have applied for. That being said, if you have applied for a position that has some financial importance, businesses do have the right to do a thorough investigation on why you became bankrupt. If they find you a risky candidate for such position, they have the right to deny you a job. Such job positions may include financial planning, accounting, retail merchandising, outside selling, banking, payroll administration, and others. In order to maximize your chances of getting such jobs is to inform the hiring manager in advance about your bankruptcy with explanation on how you have learnt from your mistakes.

Overall, despite the laws against discrimination, bankruptcy filings can still have serious adverse effects on employment opportunities both in private and public sector.

Custom Search

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?