Those facing significant debt often feel as though they’re facing an uncertain future full of questions: will they be able to pay the debt? Should they file for bankruptcy? If they do file, how will that decision affect their financial stability moving forward? One question that is central to the decision to file bankruptcy is how that bankruptcy could affect filers’ job prospects moving forward.
For those considering bankruptcy, there are many factors to keep in mind. While future employment is one important and complex part of that consideration, you may wish to speak to a Brownsville bankruptcy lawyer from the Law Office of Phillippe and Associates prior to filing to learn about the many ways in which a bankruptcy filing could affect and help you.
Termination Due to Bankruptcy
Put simply, your boss cannot legally fire you for filing for bankruptcy. In fact, neither private employers nor the government are allowed to terminate or discriminate against employees on the basis of a bankruptcy filing.
That being said, those who feel they have been fired, demoted, reprimanded, or denied a bonus due to their bankruptcy filing could have a hard time seeking protection. If you feel you have been fired or discriminated against due to your filing, you may have difficulty proving that your bankruptcy filing was the only reason for that decision.
Discrimination Due to Bankruptcy
As mentioned before, bankruptcy laws prohibit employers from discriminating against their employees due to their choice to file for bankruptcy; however, that law does not apply to the hiring processes of most employers.
When you file for bankruptcy, that filing is shown on your credit report, something which is often examined by prospective employers. Under the law, government agencies cannot “deny employment” on the basis of a bankruptcy filing, but there is no such restriction for private employers. This means that a potential employer could pass you over if they feel that a bankruptcy filing makes you a less attractive candidate.
Improving Your Professional Potential, Post-Bankruptcy
While limited, there are ways in which bankruptcy can negatively affect your employment prospects. However, there are a few things you can do to counteract those effects.
First, you can amend your credit report to include a consumer statement, a note explaining why your financial situation is the way it is. This can be especially helpful for those who have or are struggling with medical debts or debts due to the coronavirus.
Next, you can leverage your filing as a positive in conversations with potential employers. Filing for bankruptcy is a difficult choice that takes a significant amount of work, both good characteristics in a potential employee. Bankruptcy also improves your financial stability, meaning that it could be better to have no debts and a bankruptcy on your credit report, than significant debts with no solution apparent.
Brownsville Bankruptcy Attorneys Looking Out for You: The Law Office of Phillippe and Associates
Filing for bankruptcy is a serious decision that can have widespread impacts on your life far beyond your employment prospects. While many of these impacts are positive and represent an opportunity to start fresh, others can outweigh those effects for people in specific situations.
To learn more about whether or not bankruptcy could help you find a path to financial freedom, reach out to the compassionate Brownsville bankruptcy lawyers at the Law Office of Phillippe and Associates now.