Bankruptcy Lawyer Bryan W. Stone answers the question: “Should I file bankruptcy?”
Something many people worry about when considering whether or not to file for bankruptcy is the potential impact the bankruptcy could have on their employment prospects. The reality is that some employers run credit checks and the fear is that this could reveal the bankruptcy and end up costing you a job. To find out more about how filing for bankruptcy can impact your employment prospects, keep reading.
Unfortunately, yes, employers who want to know are able to find out whether you’ve filed for bankruptcy previously. A bankruptcy is a public record and is also reported to your credit report. If an employer runs a credit check, the bankruptcy will show up, assuming it has occurred within the previous 10 years.
Do employers care?
The good news is that while employers can see that a bankruptcy has occurred in the past, it doesn’t mean that they’ll have any interest. After all, your ability to work as a teacher or a nurse or a marketing manager would not be impacted by a previous bankruptcy. Though they can always ask about your financial history, you need to think about whether the bankruptcy has any relevance to the work you’ll be doing. Whether and how much an employer cares will largely depend on your particular field of work.
Those whose jobs involve handling or access to money, such as accountants, bankers, people doing payroll, are likely to have more scrutiny from present and future employers. The same thing goes with individuals in law enforcement or people with jobs that require security clearance. In both cases, employers want to be sure that the individual cannot be compromised, and financial problems might make that easier to accomplish. Unfortunately, filing for bankruptcy can make it difficult to get these kinds of jobs, especially while the bankruptcy and other financial troubles are fresh on the credit report. Though bankruptcy can technically not serve as a basis for making hiring and firing decisions, bad credit (which is often directly tied to a bankruptcy) is considered a legitimate basis for such decisions.
What about your current job?
Now that we’ve discussed what can happen to your future employment prospects, let’s spend a bit of time discussing the present. Can you be fired simply for filing for bankruptcy? Thankfully the U.S. Equal Employment Opportunity Commission does not allow employers to fire you for filing for bankruptcy. That said, employers can fire you for things like tardiness or poor performance, even if these issues are related to your bankruptcy. Employers are also allowed to take away access to sensitive information or suspend security clearances due to a bankruptcy/bad credit.
That said, for those who already have jobs, the good news is that it isn’t very likely your employer will be aware when you file for bankruptcy protection. First, you are not required to reveal this to your employer. Second, if you’re already employed chances are your employer won’t continually run credit checks. The only time this might happen is if you apply for a promotion. If it does, it’s usually best to be proactive and explain your recent trouble in advance. Be honest, but don’t dwell on the issue and be sure and explain that it has no impact on your job performance.
If you are contemplating bankruptcy in the Charlotte area, please call the skilled lawyers at Arnold & Smith, PLLC find additional resources here. As professionals who are experienced at handling all kinds of bankruptcy matters, our attorneys will provide you with legally sound advice for your particular situation.
About the Author
Kyle Frost joined Arnold & Smith, PLLC in 2013 where he focuses his practice on all aspects of civil litigation and bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord-tenant issues.
Born and raised in upstate New York, Mr. Frost attended the University at Albany on a Presidential Scholarship, graduating magna cum laude with a double major in Political Science and Sociology. He went on to attended Wake Forest University School of Law in Winston Salem, North Carolina.
Following college, Mr. Frost spent over a year teaching English in South Korea. He worked in a private school in Seoul developing curriculum, English programs, and educating both children and adults that were interested in learning a new language.
In his spare time, Mr. Frost enjoys homebrewing, fishing, and travelling.
See Our Related Video from our YouTube channel:
See Our Related Blog Posts: