Filing for bankruptcy can give you a fresh financial start, but it does have some downsides. That hit to your credit score is going to hurt, and some of our clients also worry that having this on their record will affect their job prospects. A Montgomery County Chapter 7 bankruptcy lawyer can tell you more about what to expect when you’re on a job hunt with a bankruptcy filing that can pop up on your record.
Can I Be Denied For a Job Because of My Bankruptcy?
Federal, state, and local governments cannot discriminate against you in the hiring process just because you have a bankruptcy filing on your record. Private employers are not bound by the same rule and could find out about your bankruptcy when they perform a background check.
Whether you work in the private or public sector, your current employer also cannot treat you differently because of your bankruptcy status. So they cannot terminate you or denote you just because of your filing.
Do I Have to Consent to a Background Check?
Rules can vary, but most employers who ask you if you will consent to a background check are not going to be too happy with you if you try to refuse it. Employers want to know about people before they hire them. They don’t want to find out about potential issues later on, once they have gone to the expense of training you and bringing you onboard.
So if you say no to a background check, that could certainly harm your chances of securing a job. Remember, there are discrimination protections for people who file for bankruptcy, but there aren’t any for applicants who refuse a background check. You may be better off being honest about your financial situation.
Is There a Type of Job That Could Be More Difficult to Secure After Filing Bankruptcy?
While government employers are not allowed to discriminate based on your bankruptcy filing, a private sector employer may be able to consider it in some cases. It’s probably not going to be the only factor, but it wouldn’t be that strange if an employer considered your bankruptcy if you were applying for a job that required you to handle money responsibly. Still, bankruptcy is rarely going to be a dealbreaker on its own, so don’t be afraid to apply for a position just because of your financial situation.
Talk to Our Attorneys
If you are considering filing for any type of bankruptcy, contact Mudrick & Zucker. We can schedule a consultation and tell you more about what to expect from this process. We can tell you if this is the right option for you, what to expect afterward, and how a bankruptcy filing could affect your employment and financial situation going forward.
