Realizing that you can’t keep up with payments on your credit accounts may spur you into taking action. One possible option is filing for bankruptcy, which is a court-based option for taking control of your finances.
Many people who file for bankruptcy look into how the filing will impact their finances, but they may not think about how it will affect other areas of their lives. For some, one of the major effects is to their career, but not necessarily their current job position.
Federal protections exist
United States Bankruptcy Code Section 525 prohibits employers from terminating employees because they file for bankruptcy. It also prohibits employers from being discriminatory because of the filing. This includes things like pay cuts, reduction in hours or changes in positions. Any incidents of discrimination or retaliation because of the filing should be documented because legal action in that area might be necessary.
A bankruptcy filing can have a negative impact on your ability to get a new job, depending on what type of background check is performed. This is particularly true if a job position requires trust or fiduciary responsibility, such as those in the banking or investing industry. In those cases, the bankruptcy may be construed as a mark of being irresponsible.
It’s important to consider every way that the bankruptcy filing may affect your life now and in the future. Determining how to move forward requires you to think about the benefits of what the filing can do. Once you file, you will likely experience relief since you won’t have to deal with creditor contact and will have a plan for reclaiming control of your finances.
