Individuals who file for bankruptcy are likely to have a difficult time getting unsecured credit cards or loans. However, one study found that filing for bankruptcy is unlikely to have an impact on whether a person is able to find a job. Furthermore, filing for bankruptcy is unlikely to have an impact on how long a person stays in a particular position.
This was the key takeaway from a study involving researchers from the University of Chicago, Harvard and Yale. A representative from the Social Security Administration was also involved in the study. Researchers used data from the SSA as well as the Equifax Consumer Credit Panel to come to this conclusion. The study looked at the difference between those who had a Chapter 13 bankruptcy fall of their credit report and those who had a Chapter 7 bankruptcy on their credit reports.
In most cases, Chapter 13 bankruptcies stay on a credit report for seven years while a Chapter 7 case remains on a credit report for up to a decade. According to one of the researchers, it was the first study in the United States to provide empirical evidence as to whether a bankruptcy made it harder for find work. While a study in Sweden appeared to provide such a link, socioeconomic conditions there could have accounted for it.
Those who are seeking debt relief may be able to find it by filing for Chapter 7 bankruptcy. In many cases, individuals will be entitled to an automatic stay of creditor phone calls or other collection activities. An additional potential benefit to a liquidation bankruptcy is that a case might be discharged in a matter of weeks. An attorney may help a person learn more about bankruptcy.