Does Bankruptcy Affect Your Employment?
If you’ve heard about bankruptcy before, you’ve probably thought to yourself that it would be the final resort for you should something ever go wrong financially.
If you are struggling to pay all your bills or make money faster than you must spend it, there might be a few worries to reach your mind while contemplating whether you should continue with filing for bankruptcy or not.
The biggest include your risk of employment.
See, most people think that filing for bankruptcy might get them fired, and while dealing with a lot of debt can add a burden to your decision, losing your job isn’t something you have to be bothered with at all.
You should thus take comfort that bankruptcy is provided as an option to anybody, whether you have a job or not. Employment wise, you cannot be fired as a result thereof, because it would only make matters appear worse.
Depending on where you work or how much debt you have, you are not allowed to be discriminated, yet it might still have some effect on your employment.
How does your employment get affected after filing for bankruptcy?
According to the law, you are protected against getting fired for the sole reason of bankruptcy. You can also not be discriminated against when filing for bankruptcy.
If you are unemployed and are looking for work, the chances are that you’re likely to be asked whether you are or have ever been bankrupt.
When you do get asked, you should tell the truth. If you lie and your employers to find out, you will be likely to get fired.
Could filing for bankruptcy place your professional licenses in jeopardy?
If you have certain employment licenses or work for the state, such as with nursing, medicine, teaching, law or the military, you will have to get a credit and background check to qualify for such licenses, to begin with. If you are bankrupt, it might be more difficult to obtain. If you already have a relevant license, any discrimination against you because of being bankrupt will also be against the law. You are not likely, however, to obtain a license until your bankruptcy case is solved.
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