Many people fear what others will think if they file for bankruptcy. Of particular concern is what current or future employers might think.
For most people, that worry is a non-starter. If you can still lug bricks around the construction site or inspire children to learn, few employers will care about a black mark on your credit record.
What if my job involves handling company money?
Certain roles come with a lot of financial responsibility, so some employers may be wary of retaining or hiring anyone who has filed for bankruptcy.
What does the law say?
Federal law does not allow your employer to fire you just because you file for bankruptcy, although it can be a factor in any decision. It applies to both private and government employees. The law also does not allow government agencies to refuse to hire you based on your bankruptcy. Private employers probably can, although they may struggle to justify this for any job that does not involve handling money.
What if an employer asks you about your bankruptcy?
You are typically not obliged to tell an employer you have filed, but some may find out when they run credit checks on job applicants. There is no point in lying. Instead, try to show them it is positive.
You could argue hiring you is a safer option. Someone who still has outstanding debts might dip into the company funds to pay them, whereas you have already cleared your debts. You could also argue that filing demonstrates your ability to make difficult decisions, knowing when to cut your losses and move on. No company owner wants someone prone to clinging to dead horses.
Finding out more about bankruptcy can also take an incredible weight off your mind. That could free you to dedicate more effort to your work than someone who cannot sleep due to money worries.
