Many times, people who are facing foreclosure or repossession issues opt for bankruptcy. Their major concern at that time is to protect their assets and get rid of collection actions by creditors. Most of the time says Los Angeles based bankruptcy law firm Recovery Law Group, people do not worry about the ramifications of bankruptcy on their job or future employment options. Though bankruptcy doesn’t affect your current job, it can alter your chances of finding a new job.
Filing for chapter 7 bankruptcy won’t inform your employer unless there was a wage garnishment order against you. The employer will be aware of your financial situation as a result of the wage garnishment order. When you file for a bankruptcy, all collection actions including the wage garnishments ceases! You need to inform your employer to stop wage garnishment and as a result, they will be aware of your bankruptcy.
In the case of chapter 13, your employer can be aware if there is a wage garnishment order against you. Since chapter 13 involves a repayment plan, if your bankruptcy trustee gets a wage deduction order in order to receive chapter 13 monthly repayments from your paycheques, your employer will get to know of your bankruptcy filing.
What happens if you wish to change your job?
Though you should not be discriminated against because of bankruptcy, yet some employers reject candidates on this basis. Certain jobs like those in finance (accountants, bookkeepers, CFOs, pay-roll workers, etc.) have a genuine concern regarding your past bankruptcy. This can be because it requires dealing with, managing or investing money. However, sometimes bankruptcy might make it easy to find a new job. High debt makes you at risk when it comes to blackmail and theft. Getting rid of your debts through bankruptcy lowers your debt and therefore your risk too.
Being honest about your bankruptcy filing can be your best bet to land the job. Informing prospective employers about the reasons for bankruptcy filing (sudden death, loss of a job, divorce, etc.) can work for you. Having a letter of recommendation from previous employers can also be an asset. Additionally, if a prospective employer asks to do a background credit check, agree to it. This shows that you are upfront and honest about your past and look forward to a bright future despite the hardships faced.
A bankruptcy attorney can help you get through the most difficult financial time of your life. Call 888-297-6023 to speak with experienced bankruptcy lawyers regarding your case.