Will an Employer Hire Me if I File for Bankruptcy?


April 28, 2017

Declaring bankruptcy in Florida is hard enough for most people. Many people are concerned that it can affect their future career. There are two possible employment-related issues that can fall under this. The first involves being in a job and wondering whether you’ll be fired because you filed for bankruptcy and the other is if you will be hired despite this.

Will Declaring Bankruptcy in Florida Keep Me From Getting a Job?

Under the bankruptcy code, you cannot be terminated by any private firm because you declared bankruptcy. However, the hiring process is an entirely different ballgame. Nowhere in the law are firms prohibited to discriminate against employees who have declared bankruptcy. In fact, the precedence for this shows that a lot of firms do practice this and get away with it.

Notice that private firms were explicitly mentioned. That’s because public institutions are not allowed to hinder the hiring of a person because he or she has a history of bankruptcy. It is explicitly stated in the law that an employer cannot discriminate. Although, if you think about it, very few institutions would reveal why you’re not hired to begin with. How would you know if you’re denied a job because of your records?

There are signs you can look for. During interviews, private or public, you will be asked to sign a permission slip, allowing them to look at your credit history if they are basing decisions on financial standing. Your interviews will consist of questions asking you about your credit history, how you got to that point and how bad it is. Be ready to defend yourself, and think of answers that play to your favor. The important thing is to be upfront with the facts, if you are truly interested in the position. Non disclosure or lying about this, when it can be verified, is a legitimate and almost instant reason to not hire you.

What balances out the bankruptcy code is the Fair Credit Reporting Act, which allows companies to check on your finances. This requires a security clearance though, thus the permission slip. If you are applying for a finance-related position, expect that companies will ask to look in to your credit standing. However, if you are not applying for a finance-related position, consider the relevancy of a credit check and ask yourself whether this is the company for you.

Do you feel that you have been discriminated against by your employer because of your credit history? Tell us your story!

Source: Nolo.com

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About the Author

Michael works in practice areas of Personal bankruptcy – Chapter 7 and Chapter 13, FDCPA, FCCPA, TCPA, Improper credit reporting under the Fair Credit Reporting Act (FCRA), Collection Litigation Defense, and Foreclosure Defense.