The credit and collections industry has done so much fearmongering about bankruptcy that it’s not unreasonable for you to worry about how it might impact literally every aspect of your life. This includes your ability to make a living.

Fortunately, by law bankruptcy can only impact most people’s job prospects so much.

Your Current Job

Your employer cannot fire you because you’ve filed bankruptcy. In fact, chances are they won’t even know about your bankruptcy unless you tell them.

They’re more likely to find out you’re having financial problems if you let credit problems take you all the way to a lawsuit. At that point creditors may be garnishing your wages, which means the payroll department is well aware that you’re struggling.

Future Jobs

Most employers do not even check your credit for evaluating your job prospects. In addition, the Equal Employment Opportunity Commission won’t allow employers to deny you employment on the basis of having declared bankruptcy. They can do this on the basis of having bad credit, but bankruptcy could actually help your credit.

Some positions do pay close attention to bankruptcy. Financial positions, law enforcement positions, and jobs requiring US security clearance are most impacted by bankruptcies. 

Daunting stuff if you happen to be in any of these careers already, or know that you’ll be seeking future opportunities in this arena. Yet there is hope. Usually if you make a focused effort to rebuild your credit you can have it back where it belongs in about two years. Some of our clients have gone on to get scores in the high 700s with careful work and planning. 

In addition, you always have the option to discuss the bankruptcy head on during your job interview, and to tell your side of the story. This gives you the opportunity to share why you had to declare bankruptcy. Even the most stringent financial employer will probably understand if cancer and medical bills destroyed your ability to stay afloat for a time.

How Bankruptcy Might Actually Help Your Job Search

Nobody does a good job of job hunting when they are under severe stress. When creditors are calling every single day and when you know that you are a step away from eviction, repossession, foreclosure, or lawsuits it’s hard to present a relaxed, competent professional image.

Once you’ve freed yourself from financial stress you may have more bandwidth and energy to pursue your job search, which means you might have more luck securing a role that will help you meet your goals in life. 

Claim Your Free Consultation Today

Think bankruptcy might be the right step for you to take next? Reach out to our law office to claim a free consultation.

We’re here and happy to help.

See also:

What to Expect After Your Bankruptcy Discharge

How to Prepare For Your Free Bankruptcy Consultation

Are You Languishing in the Pre-Bankruptcy “Sweatbox?”