Michael D. Hart, P.C.

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Bankruptcy may not keep people from getting a job

| Mar 18, 2020 | Chapter 7 Bankruptcy |

People in Virginia may have always been under the impression that filing for bankruptcy could have a catastrophic effect on their future even though their debt has been discharged. However, researchers now believe that one of the possible effects, not being able to find a job, is less of a risk than previously thought.

Researchers studied data over a three-year period for people who had previously declared bankruptcy. They found that the odds of securing employment were little changed if someone had an indication of a bankruptcy on their record. They also found that bankruptcy did not have an impact on whether someone could keep their job.

The previous belief was that employers look at an applicant’s credit history and view bankruptcy as a black mark that is a sign of unreliability. However, in times of economic uncertainty, many people experience financial hardship, and bankruptcy should not necessarily be viewed as a bad thing. The new research seemingly goes against years of data to the contrary, namely that bankruptcy will keep people from getting a job. However, issues of discrimination can be very real notwithstanding this current research data. Many times, people perceive that they have not gotten a job, or even lost theirs, because of negative data in their credit history.

During turbulent and rough economic times, many people may find that they have long-term issues with their debt that could require them to file for a Chapter 7 bankruptcy. If this is the case, an attorney may be helpful in advising on the measures that a person would need to take and the process to be followed. Bankruptcy is a difficult position for anyone to be in, and the advice of an attorney might help a client through what is a painful time in their life.