If you’re overwhelmed by debt and are considering the proactive step of filing for bankruptcy so you can get a fresh start, you may have several questions. One of these might be, “Does bankruptcy disqualify you from a job?” In most situations, bankruptcy won’t affect your current employment. It is possible that in the future when you look for a new job, a potential employer could become aware of your bankruptcy on your credit record. Federal, state, and local government agencies are prohibited by law from using your bankruptcy as a reason not to offer you a job. However, in private industry, some employers in certain fields conduct credit checks on job applicants, and they might view a bankruptcy as a reason to avoid offering you a job. It really just depends on the employer. While most employers do not conduct a credit check, when applying for certain jobs such as in the financial industry, certain employers may conduct a credit check as part of their hiring process.
If you are someone struggling to deal with debt and want to find answers to your questions, then a bankruptcy lawyer at Fesenmyer Cousino Weinzimmer can help. Our skilled and experienced attorneys have enabled many clients to achieve a fresh start.
To learn more about how we can help, call us at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati). We offer a free initial consultation and can help you get back on the road to success.
How Long After Bankruptcy Can I Get a Job?
You’re certainly allowed to look for a new job anytime during the bankruptcy process. You are not prohibited from switching jobs or conducting a job search when you file for bankruptcy. In some cases, it may not be a good idea for a person to make several big life changes all at once. Maintaining your current job until the bankruptcy is completed can provide you and your family with stability and an ongoing income. However, every individual and their family must do what’s best for them.
Follow these tips when looking for a new job:
- Update your resume.
- Customize your resume for each job posted.
- Get your supporting documents organized.
- Make a decision about what kind of job you want so your target is clear.
- Research your target companies.
- Update your online career brand, including your LinkedIn and Facebook pages.
- Make phone calls, send email greetings, and generally activate your network of friends and professional colleagues.
- If looking for a new job is part of your post-bankruptcy goals, then focusing on the future can be inspiring and invigorating. After all, the purpose of bankruptcy is to give you a fresh start for the future.
Will Bankruptcy Keep Me from Getting a Job?
In some cases when you’re applying for a job in the private sector, an employer may check your credit report as part of a background check. This may or may not affect whether the company extends a job offer to you. Government entities – federal, state, municipalities, and others – are prohibited from withholding a job offer because a person has filed bankruptcy. However, private companies are not barred from doing this. The impact a bankruptcy has on your credit record will vary from employer to employer. Many employers do not conduct credit checks as part of their hiring process.
If you file for bankruptcy and want to get a different job in the future, the most important thing you can do is put your best foot forward, polish up your resume, get your professional references in order, and persistently pursue your goals.
Bear in mind that not all employers will view filing for bankruptcy as a bad thing. While it does temporarily lower your credit score, bankruptcy is also a step in the right direction. Even if you have mismanaged money or gotten into a lot of debt in the past, filing for bankruptcy is a sign that you’re getting your finances back on track.
Declaring bankruptcy might have less of an impact on employment than you think.
Will Bankruptcy Impact My Current Employment?
In almost every case, filing for bankruptcy won’t impact your current employment. Most employers do not repeatedly run background checks on their employees — they just conduct them before hiring. When you file for bankruptcy, notifying your employer isn’t part of the process. However, it does become part of the public record. If your employer goes specifically looking for a bankruptcy filing, they can find it, but virtually no current employer is going to do this.
Does Bankruptcy Always Show Up on Background Checks?
In some cases, you may not need to worry about bankruptcy getting in the way of new employment. There are many kinds of background checks a new employer can conduct, and bankruptcy doesn’t show up on all of them.
Bankruptcy will generally show up on these kinds of background checks:
- Credit checks
- Federal bankruptcy court checks
Bankruptcy will typically not show up on these kinds of background checks:
- Criminal record checks
- Employment verification
- Driving record checks
- Verification of education
- Civil court checks
New employers won’t always tell you what kind of background check they intend to run. If you wish, you can ask what type of check they conduct or what the background check process looks for.
You don’t have to worry about an employer running a background check without your knowledge. Federal law requires employers to notify you in writing if they intend to conduct a background check. You have a right to decline, but that will likely result in your not getting the job.
What’s the Difference Between Chapter 7 and Chapter 13 Bankruptcy?
There are a few different kinds of bankruptcy, and a skilled attorney at Fesenmyer Cousino Weinzimmer can help you decide which one is right for you. The most common two types of bankruptcy for an individual are Chapter 7 and Chapter 13.
If you aren’t sure whether Chapter 7 or Chapter 13 bankruptcy is best for your needs, we can help!
Chapter 7 Bankruptcy
Often referred to as fresh start bankruptcy, Chapter 7 enables you to discharge unsecured debts, including credit cards, medical bills, installment loans, and personal loans. It stops, prevents, or resolves collections, loan deficiencies, repossessions, wage garnishment, and civil judgments. It can help you eliminate bills you cannot afford while allowing you to keep assets such as your car and house, as long as you continue to make monthly payments on these. Chapter 7 cannot discharge alimony, child support, or most student loan payments.
Chapter 13 Bankruptcy
Often referred to as reorganization bankruptcy, Chapter 13 is a consumer debt reorganization that enables a person to repay financial obligations affordably and in one monthly payment over a 3- to 5-year period. Generally, you must have an ongoing income for Chapter 13 to be feasible. Chapter 13 is an option available to help you take control back from your creditors and create a plan for future repayment. This plan must be approved by the court. Chapter 13 can prevent creditors from foreclosing on your home or repossessing your vehicle if you want to reaffirm these debts and pay them as part of a court-approved repayment plan. Once you fully complete your plan, the remaining eligible debt is discharged. You also get relief from harassing phone calls and letters from creditors during the duration of the repayment plan.
Contact an Experienced Bankruptcy Lawyer Today
If you are struggling to pay monthly credit card and consumer loan payments, and there seems to be no end in sight, it may be time to consider a different approach. Bankruptcy can be a path to a fresh start and greater financial freedom in the future. Even the most responsible individuals sometimes find themselves facing insurmountable debt because of catastrophic illness, job loss, or other financial setbacks. To learn more about whether bankruptcy could be the right step for you, talk to a skilled and experienced bankruptcy lawyer at Fesenmyer Cousino Weinzimmer. The initial consultation is free.
Call us today at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati). We’re here to help you take steps toward a brighter financial future!
