to my field, and due to my poor past choices, it looks like I will be filing
for bankruptcy. It’s not a move that I want to make, but I’m swimming in debt
now that I have to start paying my student loans back.
should I be concerned about when filing for bankruptcy? Should I be worried
about my career?
is a big step, but it’s a step that millions of people take. It’s not the end of the world, you will be able to
rebuild your credit, and it’s better to go through this process when you’re
younger than when you’re in retirement.
time to correct all of the impacts that a bankruptcy will have on your life.
It will be
harder to get a mortgage loan, so this is something to consider if you plan on
purchasing a home in the immediate future. Aside from this, your biggest
concern should be that it’s going to be much harder to get a loan or credit for
the next few years. You’ll have a stain on your credit report, but the stain
will fade away, and life will go back to normal.
debt is not able to be discharged, so if you’re hoping to eliminate that pile
of debt, you won’t be able to, unfortunately.
this, your employer cannot fire you.
“Anti-discrimination provisions in the
Bankruptcy Code that prohibit employers from terminating employees based on
their filing petitions for bankruptcy,” explains Randolph Law Firm, P.C.
The concern will be future employment, as a
bankruptcy may make it more difficult to get a job in the private sector in the
future. Your current employer cannot, by law, do any of the following:
- Demote you
- Reduce your salary
- Reduce your responsibilities
But if you don’t show up for work or prove to be
incompetent in your position, you may be fired.
Employers that you’re currently working for may
not even know that you have a bankruptcy. If you’re filing for Chapter 7, no
one will know of your bankruptcy in most cases. Employers may learn of the
bankruptcy if wage garnishment is stopped. If you owe the employer money, they
will hear about the bankruptcy through the court.
Private employers can conduct a background check
and use the bankruptcy against you. If you’re an accountant, for example, a
potential employer may wonder how you mismanaged your money and not hire you.
The potential employer may not blame the
bankruptcy for not hiring you, but it is a stain on your financial habits if
you plan on working in the financial field.
Governments cannot use bankruptcy as a reason for
not hiring an applicant. Private employers that are conducting more credit
checks may ask about the circumstances leading to the bankruptcy. The biggest
issue you’ll have is if you enter a field that requires you to manage money. A
bookkeeper or payroll position may be much harder to secure because of your
Otherwise, bankruptcy will allow you to get back
on a solid financial ground moving forward.