In this article, we’ll discuss the important topic of: “Getting A Job After Filing Chapter 7”
Wondering if filing for bankruptcy, dismiss you from your job? Or will it restrict on getting a new job? To overcome default, you will need to have a steady income source. And in such situations, if there are questions surrounding bankruptcy, it is evident that it will make your nervous.
But before you file for bankruptcy, you need to understand the difference between Chapter 7 and Chapter 13 bankruptcy. But according to the US constitution, bankruptcy is a common stress reliever for every citizen in the country under massive debts.
Let us briefly discuss the various aspects of your job and career despite filing a chapter 7 bankruptcy.
Getting A Job After Filing Chapter 7
The most common fear amongst individuals before filing a case of bankruptcy is will this affects their present or future job opportunities. But according to the US constitution, it is highly unlikely that it will affect your job. And if you face any such issues, you have every right to bring them to court.
If you already have a job and your employer comes to know that you will file bankruptcy, it should not affect his behavior. He has no right to either fire you or give you a lesser salary, or even demote you and relieve you from your current responsibilities. Under no circumstances can an employee be harassed for filing a case of bankruptcy.
Now, if you are looking for a new job, the employer may find out about your bankruptcy from the background check and your social security number, if given permission. But that should not be a reason for not offering you a job.
However, if you file a Chapter 7 bankruptcy and then get a new job, you will have to inform your attorney and the court. As in Chapter 7 bankruptcy, you are likely to be relieved of a few or more disposable expenses to get a discharge. But after the court and trustees find out about your new income source, you are most likely to be forced to change to Chapter 13 bankruptcy, as you can now afford the repayment of debts.
Impact of Bankruptcy On Government and Private Sector Jobs
There are two types of employment systems in the country. And they have different employment rules and management. However, Section 525 of the Federal Law, which is also the bankruptcy code, protects the debtors from discrimination. Let us find out their behavior towards bankruptcy.
Government or Public Sector Organizations
Any government body cannot revoke, refuse or suspend the renewal of a license, grants, or any permit to any citizen who has filed a bankruptcy case. In terms of employment, the government strictly prohibits any discrimination in terms of employment opportunities. There can be a thorough investigation and background checks in government organizations like in national security or crime branch before your employment. And the employer can find out about your bankruptcy. But that does not stand as a valid reason not to employ you.
Private Sector Organizations
In the private sector, the employers do not have the authority to remove you from an existing position or not offer you a promotion or job opportunity solely based on your credit scores. When you file a chapter 7 bankruptcy, it stays in your credit statement for ten years, and in the case of chapter 13 bankruptcy, it lasts for seven years. However, in private industries where there are involvement and management of finances in your job role, there can be denial from the employer, as it paints a gloomy picture.
Do Bankruptcies Show Up On Background Checks?
Yes, it does. Bankruptcy is a public record subject to viewing if permitted by the concerned person. There are two ways by which someone can find out about your bankruptcy. One by enquiring at the federal courthouse at the particular district where you have submitted your case. And another way is by logging into the PACER account with appropriate credentials. PACER keeps the record of all bankruptcy-related documents. Another insignificant method is when you inform someone about your bankruptcy.
Usually, employers check for criminal records and, if necessary for the job, can look up credit records. When it is a genuine and understandable circumstance like a medical emergency, divorce, etc. that has led you to file a bankruptcy case, most organizations will consider.
How Easy Is It Getting A Job After Filing Chapter 7?
To explain briefly, there cannot be any hindrance or resistance of employment or job opportunities for a person who has filed a chapter 7 bankruptcy. Irrespective of which stage of bankruptcy you are in, there is no restriction of career growth to a debtor who has filed for bankruptcy or to someone who is associated with another bankrupt individual.
The bankruptcy slowly becomes insignificant with years, which means if it is old and toward the end of discharge, it can have no impact on your job.