Bankruptcy Doesn't Need To Be Stressful
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How will bankruptcy affect your employment opportunities?

Perhaps you are looking for a new job with more opportunities for advancement, but there is a problem: You have decided to file for bankruptcy.

You have weighed your options, and bankruptcy is the most logical solution for resolving your debt. Will this decision make your job search more difficult?

Bankruptcy choices

Once you decide to file for bankruptcy protection, you have the option of choosing either Chapter 7, which discharges your unsecured debts, or Chapter 13, which puts an affordable monthly plan in place for the repayment of creditors.

Keeping your current job

If you are currently employed, keep in mind that your employer cannot fire you because of your bankruptcy. In fact, you are not required to reveal your decision to file. On the other hand, your employer can terminate you for valid reasons such as tardiness, taking too much time off or slacking off on your work, so do not allow your search for a new position to impact your present job.

Looking for a fresh start

Because it becomes a public record, your bankruptcy will appear on your credit report; recruiters who perform credit checks on job applicants will see it. While a government agency cannot automatically use the bankruptcy to deny you employment, a private employer can if there is cause. For example, if you apply for a position in which you would need to manage money, the prospective employer may see you as a risk because of your bankruptcy and opt for hiring a candidate with a clear record.

About security clearance

If you apply for a position that requires a security clearance, you may be in luck. Certain jobs such as those in the FBI or CIA are difficult to land for people carrying a lot of debt. The reasoning is that such people could be susceptible to bribes. However, because your debts will disappear thanks to the bankruptcy process, you may be a good candidate for a job requiring a security clearance.

A new beginning

While bankruptcy may be a factor at times in your search for a new job, many recruiters will put more emphasis on your skills and abilities. Keep a positive attitude, and remember that through bankruptcy, your future, including your working career, is going to look a lot brighter.

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