Will Bankruptcy Destroy My Future Job Prospects?

 Posted on May 05, 2014 in Chapter 7

More than one million people every year resort to bankruptcy to get relief from overwhelming debt. And yet there is a stigma out there that you will be unable to find a good job with bankruptcy filing in your past. However, this is not true. Bankruptcy’s impact on your future job prospects has been over exaggerated.

An employer has a right to run a credit check on applicants to see whether potential employers are stable. The reality is, not every job you apply for is going to run a credit check. If you are applying for a job with access to company finances or access to other people’s private data (like Social Security numbers), you should expect a credit check. But this does not mean that every employer vets prospects in this way.

Bankruptcy can stay on your credit report for up to 10 years (Chapter 7) or seven years (Chapter 13). If you are applying for new jobs during this time period, then yes, an employer could find out about your bankruptcy. An employer, however, may also see how you have managed to rebuild your credit and move on from that incident during that time period.

If you are buried in debt and are worried about your future job prospects, bear in mind that poor credit also shows up on your credit check run by an employer. You do not want a poor credit history that you have been unable to fix on your reports, either. Taking the bull by the horns and setting up a consultation with a bankruptcy attorney may be in your best interest so that you can begin rebuilding your life. After several years post-bankruptcy with on-time payments and other positive credit indicators, you may see improvements in your credit score.

Do not get trapped by a financial burden that you cannot pay off. Contact a Texas bankruptcy attorney today to learn about your options.