Feeling the pressure of owing more money than you can pay is terrible. One option that you have for taking control of your financial future is filing for bankruptcy. This is a big decision that you should make only when you’re fully informed about how it might affect you.
Some people wonder how filing for bankruptcy will affect their careers. While you might be looking for a simple answer to this, the truth is that there are a lot of variables about how your case might impact your employment.
A current employer
It’s against the law for an employer to discriminate against an employee just because of their debts. You don’t even have to tell your employer about the bankruptcy. They may find out if they’re told that they have to take debt reorganization payment directly from your check, but this isn’t commonly done in a bankruptcy. They may also find out if there’s a wage garnishment in place.
A future employer
Some private-sector employers do a credit check before offering a job. In many cases, it’s legal for them to bypass you for hiring if there’s a bankruptcy or another blemish on your credit report. Of course, all the past due accounts could do the same thing.
Making sure you understand your rights and responsibilities, as well as how the bankruptcy will benefit you, can help you make an informed decision. Be sure you’re working with someone who can do what’s in your best interests. It’s best to get your case filed as quickly as possible so you know that you’re going to get a fresh financial start soon.