Can Filing for Bankruptcy Affect My Career?

 Posted on January 09, 2025 in Bankruptcy

If you have a good job now or are on a promising career trajectory, it makes sense to prioritize your future career prospects. Finding and keeping gainful employment is essential to staying out of debt and recovering your financial health after bankruptcy. It makes sense to take the time to understand how bankruptcy could or could not affect your current and future employment. For most people, filing for bankruptcy has no real impact on their job prospects. However, if you work in certain professional industries, you may encounter employers less willing to hire applicants who have been through bankruptcy. An experienced Kerrville, TX bankruptcy attorney can help you understand how a bankruptcy might affect your career plans.

Can I Get Fired for Filing for Bankruptcy?

Your current employer cannot legally fire you just for filing for bankruptcy. Firing an employee for needing debt relief would be considered a form of workplace discrimination. Even the best and most responsible employee could need to file for bankruptcy after experiencing setbacks that are beyond his or her control, like extraordinary medical bills or a house fire.

Your employer may not even find out about your bankruptcy. Unless you have had debt collectors calling your workplace or your wages are being garnished, your employer is unlikely to learn about your bankruptcy in the first place. Even if your employer does find out, he or she may not care. Unless you work in a specific white-collar field like finance where image is important, your employer is not likely to consider your bankruptcy relevant to your employment.

Can an Employer Refuse to Hire Me Because of My Bankruptcy? 

An employer could potentially hold your bankruptcy against you during the hiring process. While you cannot be fired for having a bankruptcy, future employers could refuse to hire you. Again, this is usually only a problem for people who work in industries where showing financial responsibility is important. For example, if you want to work as a professional trustee for a finance company, prospective employers might consider bankruptcy in your past problematic.

You will know if a prospective employer screens for bankruptcies or other personal financial problems because you will be asked to sign a consent form for a credit check. You can attempt to get ahead of this issue by being up-front about your bankruptcy and explaining the circumstances that led to it. Prospective employers may consider whether the issues that led to your bankruptcy were beyond your control. For example, an applicant who filed for bankruptcy due to extreme medical bills may be treated with greater understanding than an applicant who simply overused credit cards as a young adult.

Contact a Kerrville, TX Bankruptcy Attorney 

Law Offices of Chance M. McGhee will work to help you maintain your career trajectory despite experiencing bankruptcy. Compassionate San Antonio, TX bankruptcy lawyer Chance McGhee will do all he can to set you up for financial success in the future. Contact us at 210-342-3400 for a complimentary consultation.