Long before someone actually files the papers to declare bankruptcy, they are already feeling the weight of what that Chapter 7 or Chapter 13 will mean. You may be reluctant to go out for a night out with friends and, perhaps, your car is in need of repairs you can’t afford. The very last thing you need at this point is to be concerned that filing for bankruptcy protection may impact your employment.
In most cases, declaring bankruptcy will not affect your current employment or your current wages. In fact, New Jersey and federal laws protect workers who are currently employed for termination on grounds that they declared bankruptcy. This may be an act of bankruptcy employment discrimination. Current employers also cannot discriminate, demote or lower wages on an employee who recently declared bankruptcy.
Similarly, government agencies cannot use bankruptcy as a grounds to refuse to hire you. In fact, most positions in federal, state and community governments will not really even require a credit check at all. On the other hand, private employers are given the right to refuse to employ a new hire based on their credit score. In order for a potential employer to find out about a bankruptcy, they would have to conduct a background check on you. This is something that you would have to legally consent to.
Refusing to consent to a background check can also be grounds for a private employer to refuse to hire you. The good news is that despite credit checks being increasingly common in private employment, they are not universal, nor are they an immediate reason for rejection in most cases. As long as you are up front with your prospective employer, many companies will still hire you regardless of a bankruptcy if you have the skills and experience to do the job.
If you are concerned about your ability to find employment after declaring bankruptcy, or if you are just unsure whether or not bankruptcy is the only option left for you, it’s best to call an intelligent, knowledgeable lawyer. Call the law office of Garland & Mason, L.L.C. for free consultation today. We can also help determine if you were wrongfully terminated based on bankruptcy employment discrimination.