Bankruptcy And Your Employment – If You’re In Debt, You’re A Threat

You cannot be fired from your current employer for filing bankruptcy, however a prospective employer may consider the fact that you filed bankruptcy.

I’ve found that there is greater risk of being denied a new job as a result of having lots of unpaid bills rather than having no bills and a bankruptcy.  Why?  There’s a risk that a prospective employee stressed out over bill problems may sell access, information or doing something illegal.

In contrast, someone with a bankruptcy and no debt problems does not present the same risk to the employer.  Want proof?  Just ask an employer that does a credit check as part of the employment application process.

Case Study

I had a client that came in for a consultation after he was offered a job at one of the largest employers in San Antonio.  (They sell insurance.)  He used to work for them, them he got downsized, then they called him up when they started hiring again, and they invited him to apply.  He was offered a job at the interview.

Here’s the reason he came in: the day after he was offered a job, they called him up to let him know that he didn’t pass the credit check.  He had to file bankruptcy to be accepted for employment.