Most people understandably don’t want to file for bankruptcy unless it’s the only way to escape their overwhelming debt. However, when weighing the pros and cons of bankruptcy, it’s important not to fear things that likely won’t happen.
For example, many people believe that having a bankruptcy filing in their credit history will prevent them from getting a job – or at least one that will help give them the financial stability they need. It’s important to know the facts.
The law offers some protection
Some state laws consider a credit history check by employers a form of illegal discrimination. New Jersey doesn’t have a law like that.
However, the federal Fair Credit Reporting Act (FCRA) does require employers to disclose any intention to obtain a credit report and obtain an applicant’s written authorization to do so. It also requires employers to give applicants a copy of the report so they can dispute any inaccurate information and to disclose whether a decision not to hire them was based in any part on the results.
There are some types of careers and jobs where checking a person’s credit history is relevant and allowed. For example, those with careers in finance and law enforcement, and any job that requires a security clearance, generally need to be considered especially trustworthy with valuable assets as well as confidential information. Employers also can’t have these employees subject to blackmail. Certainly not everyone with money troubles is “blackmailable.” However, they don’t want to take chances.
Bankruptcy vs. deep in debt
If you’re concerned that filing for bankruptcy will look bad on your credit report, remember that owing multiple creditors money doesn’t look good either. If you’re questioned by a prospective employer about your bankruptcy, be prepared to articulate how you found yourself in over your head (maybe due to something you couldn’t control – like medical debt or a job layoff) and took steps to turn things around.
Bankruptcy isn’t anything to be ashamed of. With experienced legal guidance, you can learn more about it and whether it’s the best solution for you.
