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Will bankruptcy affect your job and employment opportunities?

On Behalf of | May 13, 2024 | Bankruptcy

If you are thinking of filing for bankruptcy, you may be concerned about the effect it may have on your job and future employment prospects. Will you get fired? Can it lead to difficulties in finding a new job?

While these concerns are valid, the impact of bankruptcy on your career and job opportunities depends on various factors. Here is what you need to know.

The law protects you from employer discrimination

Employers are prohibited from discriminating against employees or job applicants based solely on their bankruptcy status. As such, you cannot be legally dismissed from your job just because you filed for bankruptcy. It could amount to wrongful termination, and you can take legal action against your employer.

Considerations for specific industries

While the law prohibits discrimination based on bankruptcy alone, the perception of financial irresponsibility could affect your job prospects in certain industries. For instance, your bankruptcy status may impact hiring decisions or promotions in jobs requiring financial trust, like banking or accounting.

Employers in these sectors might conduct thorough background checks or inquire about your financial history to assess potential risks or conflicts of interest.

Mitigating the impact

You can reduce the impact of bankruptcy on employment opportunities by demonstrating responsible financial behavior and regaining your financial health.  Pay your bills on time, manage credit wisely and create a budget to show potential employers your commitment to financial responsibility. Be honest about your bankruptcy status, and highlight any positive steps you’ve taken since then.

Seeking qualified legal guidance before getting started with the bankruptcy process can offer tailored insights based on your specific situation and help you understand the potential consequences.