Filing Bankruptcy Can Cause Serious Damage to Your Career

An employer cannot use as a reason not to hire somebody who has declared bankruptcy. It is illegal for an employer to do it. But for having a bad credit, it is legal for an employer to deny hiring an applicant for a job. People are not so worried about getting a job due to having a record of bankruptcy. They are more concerned about the negative effect of bankruptcy to their credit record.

How does bankruptcy affect your credit?

It should be noted that before bankruptcy was declared, damage to your credit had already been done. Learn your lessons from your mistakes and start improving your credit score. In two to three years you will be able to purchase a house in the same manner like those who have not gone through bankruptcy.

How does bankruptcy affect you in looking for a job?

As mentioned earlier, bankruptcy does not affect your application for a job. But employers can still use the bad credit record prior to your declaring of bankruptcy in rejecting your application for employment. Companies will do the investigation of your profile including your credit history to determine whether you are qualified or the right fit for the job. The investigation will help companies in their selection process to avoid the big risk of hiring thieves. They presume that people with debts are likely to steal from their employers. In many cases, debts were incurred due to gambling or use of drugs and these are not recorded in credit reports.

Tips on getting an employment after bankruptcy

* Be frank: If the background checking involves your credit history, call your potential boss and explain the reason of your bad credit. Your candor will be appreciated by your potential boss.

* Know and assert your rights: If you feel that your job application for employment is rejected due to bankruptcy, you can call the hiring manager to inquire why you were not hired. Do not be afraid to ask.

* Get many recommendations: Employers want to avoid hiring people with bad credits. They want to protect their business. Recommendations from credible people will help counter all these negative information about you and make employers believe that you are trustworthy.

Bankruptcy and Employment

Companies give only so much attention to your credit history if the position you are applying for involves cash handling. Otherwise, they will give more attention in criminal background check and consider credit check as only part of it. Therefore bankruptcy should not be a hindrance for you to find a job.