Bankruptcy offers a second chance. A second chance at getting your financial house in order and a second chance at leading a good life. Here’s what to expect starting a new career after bankruptcy.
Although your employer may sometimes find out about your bankruptcy filing, in most cases you don’t have to worry, it won’t usually affect your employment. It won’t, in other words, get you fired. But, unfortunately, a past bankruptcy could come into play in the future if ever you try and apply to another job.
Bankruptcies And Getting Fired
In practice, employers rarely find out about a Chapter 7 bankruptcy filing. However, if a creditor has sued you, obtained a judgment, and started garnishing your wages, your employer will get the news, because to stop the garnishment, your employer must know about the bankruptcy (you or your attorney will notify the employer). However, since your employer (or at least the payroll department) already knew you were under economic stress, it’s likely they’ll welcome the bankruptcy as a way for you to take steps to put your financial problems behind you.
Usually, if you file for Chapter 13 bankruptcy, your employer will find out. If you have a regular job with regular income, the bankruptcy judge may order your Chapter 13 payments to be automatically deducted from your wages and sent to the bankruptcy court. (This is called an “income deduction order.”) In effect, your employer will be pressed into service as a sort of collection agency, to make sure you honor your Chapter 13 plan.
Bankruptcies And Getting Hired
No federal, state or local government agency can consider your bankruptcy when deciding whether to hire you. Private employers, however, aren’t constrained by a similar rule, and some people find that having a bankruptcy in their past comes back to haunt them. Although hiring (private) companies rarely check explicitly for bankruptcy filings in your background, they will check your credit. This is especially true when a job involves finance, accounting, cash or valuable merchandise and when a position requires a security clearance.
The problem (at least for those who have filed for bankruptcy in the past) is that checking your credit is tantamount to checking your bankruptcy records because it’s sure to come up. This, however, is a fairly reasonable expectation considering the fact that any company looking to hire you to take care of their finances is probably interested in how you personally take care of your own finances.
While employers need your permission to run a credit check, employers can also refuse to hire you if you don’t consent. If you’re asked to give this authorization, consider speaking candidly about what the employer will find in your file. Being honest upfront about problems that are behind you might outweigh the negative effects of the bankruptcy filing itself.
If your debt is spiraling out of control and you need help, it’s time to contact the largest consumer bankruptcy filing firm in Florida. We are here to make sure you’re properly educated about bankruptcy and to help you build a strong financial foundation. Call the Law Offices of Patrick L. Cordero today at (305) 445-4855 for a free, no-obligation consultation.