Can Employers Use Bankruptcy Against You?

Hopefully, your future employer won't hold your bankruptcy past against you.

When searching for a new job, you want to present yourself in the best light possible. If you've had money troubles in the past and declared bankruptcy, you may be concerned about how this will affect your potential employment.

Federal Law

Federal law makes it illegal for employers to discriminate against potential employees because they've declared bankruptcy.

Disclosure

Your employer shouldn't have any way of knowing you filed for either Chapter 7 or Chapter 13 bankruptcy.

Financial Institutions

While it's not legal for an employer to fire you or discriminate against you for having credit problems in the past, it does sometimes still happen. If you're applying for a job with a financial institution, for example, a past history of bankruptcy could keep you from getting the job. The employer may choose another person who doesn't have a negative money past.

Background Checks

Some companies will perform a background check during the hiring process. They'll need your permission to do so. If a credit report is included, you should explain they'll find bankruptcy in your history.

References

• Cohen Jaffe: Bankruptcy