Often people conceive that bankruptcy does not have an impact on jobs. However, they may stand corrected. A lot of employers are on watch about the financial stability of the people they hire. They might assume several things about a person filing bankruptcy or a person who has historically filed for bankruptcy. However, there are several legal provisions that prevent employers from laying you off just because of bankruptcy. Once bankruptcy is filed, your name tends to be on a public record that can be accessed by anyone and everyone. It is not a very popular notice board; however, lenders do regularly visit that board to ensure they know to who they are lending it to.
Job search and bankruptcy
In the process of background verification, many employers close to 25% have accepted to have verified the credit score of the candidate before hiring. Many job profiles deem with the responsibility of managing investments for their investors or have some financial management responsibilities, such employers are more varied and keen on the personal finance management of a candidate. An employee in financial distress might pose a significant threat to a company that has sensitive date or information, which can lead to events like insider trading, leaking of information, and other image hampering activities.
The employers or background verifying agencies need a written confirmation from you to verify your credit score. Most experts suggest avoiding positions that deal with money or financial management immediately after filing for bankruptcy. If it is unavoidable consider substantiating your reasons why you think the past or your bankruptcy will not hamper the job role. The relief news is that 10 states including NY, IL, DC, etc., have passed stringent laws banning the use of credit scores as pre-employment checks. These anti-discrimination laws do help bankruptcy filers get jobs post-bankruptcy.
Aspects of jobs that can cause trouble
Security clearance – As discussed earlier, companies dealing with sensitive information need to ascertain the desperation of a candidate to ensure their reputation and data at stake are not mishandled. If you had gambling losses or drug influences that led to bankruptcy, the security clearance can be a task for you. Losing security clearance could lead to the loss of a job or demotion to a lesser important role.
Using a company credit card – Often many companies issue credit cards to their employees for travel, meals, or any other business expenses. This credit card should be used with proper guidance and no personal expenses should ideally be made on the same. Companies that offer higher limit company credit cards are bound to verify credit history to be aware of the ability to manage such credit.
Professional licenses – Many jobs or professions require a professional license to operate, which might depend directly on the credit score. Some professional licenses can be revoked due to bankruptcy, especially in the FINRA-controlled industries.
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