Will Filing For Bankruptcy Make It More Difficult to Find a Job?
The process of filing for bankruptcy puts details related to your case on platforms available to the public. Even though the process can be visible on your financial records, the odds of finding out if your neighbor or a family member has filed for bankruptcy can be quite low. The average person will not undertake the investigations necessary to recover a person’s financial records. If you are considering filing for bankruptcy, keep in mind that your financial records will likely remain secure and there’s no reason to be embarrassed when you are filing. However many people find themselves asking this question: Does bankruptcy make it more difficult to find a job?
Things can be different when it comes to applying for a new job. Around a third of employers today will run a credit check before hiring an employee and this means that any instance of bankruptcy will show up on this report.
One of the main reasons that people cite for avoiding filing for bankruptcy is they are afraid that a future employer may run a credit check and it will impede their overall ability to find work. Finding work after bankruptcy can be a concern and it is something to consider if you are without a job. Here are some common questions about filing for bankruptcy and how that impacts a job search.
Will Every Employer Do a Credit Check?
Not every employer will offer a credit check and employers that do will also have to seek permission from you before they complete one of these credit checks. Credit checks are usually a popular choice if you’re seeking a job in the financial services industry or even in the retail industry. Examining any type of job description thoroughly can often let you know if a credit check will be performed.
Should You Delay Filing Until You’re Able To Find a New Job?
You might be in the process of an interview with a new job or you may have a series of job prospects that look promising. In this type of situation, you may want to delay filing for bankruptcy for a short amount of time. It makes sense to file for bankruptcy as soon as you can to place a hold on creditor contact. If you don’t want to let a new employer potentially find out, you could delay filing for bankruptcy just a few short weeks or days until you hear back about a job.
Should I Wait If I Have Poor Credit Already?
If your credit has already experienced a slump, bankruptcy is likely not going to affect a hiring decision from the manager. Someone that already has a credit score in the 400s likely will experience no difference if they choose to file for bankruptcy or wait before an employer does any type of financial check. A prospective employer may actually appreciate that you are taking control of your finances by filing for bankruptcy if your credit score is extremely low. If your credit is still in good standing you might want to consider delaying your filing if you’re going to be applying for jobs.
Could Filing Help The Job Search?
Although it might seem counterintuitive to the process, filing for bankruptcy could actually help you to obtain a better position. By having access to some extra funds that are not allocated to your debts, you could often present yourself in a far better light for a job interview. Freeing up some extra funds could allow you to buy a new wardrobe, pay for a resume service or even make some of the necessary repairs on your vehicle to improve your first impression.
Should I Look At Different Industries?
Private employers can use bankruptcy as a means to avoid hiring you for a position. Government employers on the other hand cannot use bankruptcy as a measure to keep you from a job. Any job where you’re going to be handling money could also work to detract from your eligibility for the position. Rather than applying to work in the financial services industry, you could work at improving your experience in other fields and apply to jobs where a credit history does not matter or will not even be checked. Being proactive and asking a potential employer if you can address your bankruptcy is part of the application process can be a great idea if there is a required financial background check associated with the position.
If you are in the job market and you’d like to know how to proceed with filing for bankruptcy contact our bankruptcy attorneys today. You should never feel pressured to file for bankruptcy strategically. By contacting our staff, we can make sure that you have a plan for your bankruptcy as well as your future employment.