Bankruptcy is a viable option for those in financial trouble. It can provide the opportunity for a fresh start. Nonetheless, bankruptcy is not always straightforward, and it’s normal to have questions.
One issue that consistently arises is whether or not bankruptcy affects employment. Here are some important points to consider.
You can’t be fired because of bankruptcy
Federal law protects you from being fired because of bankruptcy. Your financial situation cannot be used to dismiss you or formally discipline you. However, if you hold a position that requires security clearances, these clearances may be reconsidered. If your position involves dealing with company funds, you may also come under scrutiny.
It can impact future opportunities
Most employers thoroughly vet prospective workers. A credit check can be carried out instantaneously, and your bankruptcy will show up on this. This could raise concerns about financial stability and reliability.
Nonetheless, employers are also aware that there is often no blame in bankruptcy. You can tell them about your unique circumstances, and they may appreciate your honesty. Being transparent can lift concerns about reliability and set you up for a professional relationship based on trust.
If you are concerned about the impact your bankruptcy has on your employment prospects, there are steps you can take. By paying bills on time, your credit score can improve after only a few months. You can also gather references from former employers that show you are hard-working and trustworthy.
Bankruptcy is a fresh start, and it doesn’t have to negatively impact employment. For more information on bankruptcy and your rights, it will be beneficial to seek legal guidance.
