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Will bankruptcy negatively impact your career? 

On Behalf of | Mar 31, 2023 | Bankruptcy

Through no fault of your own, you have found yourself in financial hardship. This is the case for millions of Americans right now. 

You’re looking into bankruptcy but want to have as much information as possible first. Something that concerns you is how bankruptcy might impact your career prospectsWill bankruptcy affect your career? 

Telling your employer 

Typically, there is no legal obligation for you to tell your employer about your bankruptcy. This largely depends on the type of relationship you have with them. Your employer may even be able to offer you some support in terms of more hours, financial guidance and much more. If they demote or fire you based on your bankruptcy then this may be in breach of the law. 

Security clearances 

For some jobs, a high-security clearance is vital, For example, if you work for the FBI, CIA or military. There are numerous factors considered in terms of security clearances, but financial responsibility is one of them. Applying for bankruptcy could mean that you lose your security clearance in these positions. 

Are you a sole trader?

If you are a sole trader then you may rely on credit to fund your larger transactions. Bankruptcy will impact your credit rating, at least in the short to mid-term, so this is something to keep in mind. Fortunately, your credit rating will start to improve after a few months, as long as you make payments on time and so on.

Bankruptcy is a complex process and there are numerous things to consider. Seeking legal guidance can give you a better idea of whether or not bankruptcy is feasible in your situation.