Will bankruptcy hurt my future career?
If you are going through financial problems, the last thing you want is trouble finding or keeping a job. However, if you are like most people contemplating bankruptcy, then chances are you are wondering how bankruptcy will impact your current and/or future employment prospects.
Will you lose your current job or have a difficult time finding work after declaring bankruptcy? Well, the answer to these questions is somewhat complicated and depends on a number of factors.
Bankruptcy and your current job
It is safe to note that you cannot lose your job by virtue of declaring bankruptcy. Your employer (private or government) cannot refer to your decision to file bankruptcy as the sole reason for terminating or changing your employment terms. This means that your employer cannot dismiss you, demote you, change your responsibilities or reduce your salary on account of declaring bankruptcy.
However, it is important to understand that other valid reasons may exist for firing or reprimanding you (such as dishonesty, incompetence or gross misconduct) and you cannot use bankruptcy to protect you from employer action based on these reasons.
Sometimes, your employer may not know if you are filing for Chapter 7 bankruptcy. However, if your creditor sued and obtained a wage garnishment judgment against you, then your employer will be made aware and required to cooperate.
Bankruptcy and your future employment prospects
As far as your job applications are concerned, no local, state and federal agency can refer to your bankruptcy status when hiring you. However, private employers might do so.
For instance, a potential employer may be hesitant about hiring you for a role that involves handling money (payroll and accounting) after declaring bankruptcy. Additionally, it is important to note that some private employers may check your credit report when assessing your fitness for employment.
Bankruptcy can be a welcome relief when you are drowning in debt. Find out how you can safeguard your rights and interests while declaring bankruptcy in Tennessee.