For Kentucky residents who are experiencing financial struggles, bankruptcy can provide some relief and help with getting to a better financial situation. However, many hesitate because they are concerned about its future impact. Some might wonder if their current and future employment will be affected. Assuaging this fear is imperative before moving forward with a bankruptcy filing.
Bankruptcy and possible employment-related challenges
Bankruptcy could be assessed with employment. When applying for a job, an estimated one-quarter of employers will check the prospective employee’s credit. This is especially true for jobs with a financial component. Still, the Fair Credit Reporting Act requires the employer to get written permission prior to conducting a credit check.
Anti-discrimination laws also protect people from being penalized for a bankruptcy filing. Public and private employers cannot dismiss a present employee because of bankruptcy. According to law, the employer is not specifically required to ignore the bankruptcy when making a hiring decision. Financial history might be a factor in being hired and this is legal. Employers cannot dismiss, demote or initiate any type of employment action because an employee filed for bankruptcy. It is possible that an employee who behaved in an unethical manner and it somehow hindered their work performance could be fired because of it.
Filing for bankruptcy goes beyond simply moving forward with the process and clearing debts. Other considerations will arise. In some cases, people who would benefit greatly from a successful Chapter 7 or Chapter 13 bankruptcy do not file because of misplaced fears. Those who are thinking about bankruptcy and are reluctant due to job-related concerns should be aware that they have certain rights.