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Bankruptcy Discrimination is illegal and you are protected under federal law U.S.C 525

You just have to proved that you are being discriminated because of it.

While there are laws which prohibit discrimination for race, color, religion, sex, national origin, age, disability, and political affiliation or belief; there are no laws which prohibit discrimination because an applicant (or employee) has filed bankruptcy. In fact, the absence of financial issues is a requirement for positions involving the handling of money, as well as those involving security concerns or professional licensing.

As a Recruiter, I was hiring Branch Managers who would be in charge of several thousands of dollars worth of equipment. Credit checks were performed and any candidate with a bankruptcy was immediately disqualified. Credit can be an issue when applying to join the police force, too. They are concerned that anyone with a lot of debt is more susceptible to bribery.

Here in Britain, having been bankrupt disqualifies you for police, military and civil service for four years and in that time you have to disclose your bankruptcy to any would-be employer. The effects that bankruptcy has on your job prospects is something you really need to consider before you declare yourself bankrupt. This is a long term effect which you should always consider.

If you went bankrupt trying to run your own business, then the experience would certainly still be a good selling point in an interview in the same field. A skilled interviewer would offer you the opportunity to say what you learned from the bankruptcy.

A bankruptcy will definitely hurt your chances if you are applying for a position that requires a military security clearance (I.E. - defense industry). A recent bankruptcy (less than 4 - 5 years) makes obtaining a security clearance very difficult, and if obtaining a clearance is requirement of employment, then your odds of winning the job is nearly nil (regardless if you're an expert in your career).

The first answer has it partially correct. Those hiring are concerned with an applicant that has a lot of debt. That is incompatible with the next statement that a bankruptcy disqualifies one, because if you've filed bankruptcy you have no debt. In the casinos here in Nevada, if there are two applicants and one owes $50,000 in credit cards, and therefore, being hounded daily to pay her bills, and the other applicant is completely debt free because of the bankruptcy, it is clear which one of those people with their hands on the money. The same goes for the potential for bribery. In all of these situations the ones doing the hiring would always ratherhire the debt free person. Alot of this stuff is Propaganda from the credit card companies.

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8y ago
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18y ago

Federal law prohibits employer's from using bankruptcy as a reason for not hiring someone. The law does not, however, keep the employer from using the person's bad credit history as a reason for not hiring them. Essentially it can cause a problem when seeking certain types of employment. well i filed bankruptcy because i was in credit card debt and my debt counselour and lawyer said it was the best thing for me to do. I could have decided not too but when you cant afford food or shelter what choice do you have. Now people wont hire me because of it and the wierd thing is i am debt free . And I am honest because when i was going thru financial struggles i could have embezzeled enough for my debt but i didnt. So this country and the people are screwed up /

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Q: Will bankruptcy effect your ability to get a job?
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Related questions

If a credit card company sues you can you file bankruptcy?

Thier actions, or lack, do not effect your ability to file for bankruptcy.


Can past history can effect a persons ability to get a job in law inforcement?

sadly, yes.


What effect will a five year old bankruptcy have on getting a job that requires a background check?

It all depends on the employer, usually after seven years a bankruptcy is clear from your record, even though someone has a bankruptcy in their record they can try to get credit to begin to improve their credit.


Does pending bankruptcy have the same effect as bankruptcy?

No. Some things may go into effect, but things are not totally ironed out with creditors.


If you own a rental property in one state that you are upside down on and is currently vacant and unable to rent out but live in another how does that effect your ability to file bankruptcy?

Bankruptcy is a Federal court procedure and law. The location of the things you own make no difference to your ability to file. BK includes ALL your assets and ALL your debts.


Can you hold your passport after you get declared bankruptcy?

A bankruptcy filing or discharge in bankruptcy should not have any effect on your US passport.


How do you invest after bankruptcy?

by getting a job!!!!


How will a bankruptcy effect your credit score?

will bankruptcy increase you credit score over time


How long does a Chapter 7 bankruptcy stay on your credit report in Michigan?

In almost every state, bankruptcy will stay on your record for 7-10 years. This is something to consider when filing because this can have a major effect on your ability to get a house, car, etc in the future.


What is job fit ability?

Job fit ability is the skill level or ability of someone to complete a task or job. Many people do not have the ability they need to fit their job's description.


How could it also hurt YOU if you declared bankruptcy?

Negative effect on your credit, Property may be affected, Not all debts can be eliminated, adverse effect on your financial situation, influence the status of your security clearance if you don't inform your employer about your bankruptcy and why you've filed for bankruptcy, can also limit future job opportunities depending on the field of work you are in, you may not qualify for new credit, Not all retirement plans are protected.


How long do you have to wait to marry after filing a chapter 7 bankruptcy?

A bankruptcy has nothing to do with your ability to marry. You can marry at any time.