For many people considering bankruptcy, the real question isn’t whether or not they should file, it’s what should they expect after their bankruptcy has been discharged. Bankruptcy filers should always expect their credit to take a pretty major hit. In most cases, this comes as no surprise and, fortunately, doesn’t last forever. However, what many bankruptcy filers may not expect is for their bankruptcy and bad credit to impact their current employment or future hiring eligibility.
Although it is not legal for a company to refuse employment to an otherwise eligible candidate based simply on a bankruptcy in their past, they can choose not to hire someone based on their credit report. Many employers run credit and background checks on potential hires as an additional resource for determining character and responsibility. If for example, a candidate has numerous judgments or lawsuits against them, an employer likely won’t consider them a trustworthy candidate. This is because many companies see employees with substantial debt as a serious risk. Many employers believe that it is these individuals that are, generally speaking, most likely to embezzle or steal from their employers.
By using a credit report and background check as one of the first investigative resources, employers can quickly weed out undesirable candidates. Unfortunately, this may also make it extremely difficult for individuals that have experienced financial struggle to find a decent job. Luckily, individuals that have filed bankruptcy may still be considered for quality employment by staying informed of their rights and be upfront and honest with potential employers. Many employers will appreciate an honest approach when explaining your poor credit or bankruptcy.
If, despite your best effort, you have been denied employment and believe it was because of your poor credit or a previous bankruptcy, consider speaking to an attorney. Your bankruptcy attorney will be able to explain your rights and the limitations employers have when requesting information about your credit.