The decision to file bankruptcy is never an easy one. Bankruptcy creates barriers to buying a home or car and obtaining credit. You worry about how it will affect your family. After the paperwork is filed and and the process is complete, most of the hard work is done. Your focus, then, will be on avoiding the situation that caused you to file bankruptcy to begin with. The last thing you want is to worry about how bankruptcy might affect your employment. Will it affect your job? It depends.alternatives to bankruptcy

How Bankruptcy Can Affect You

If you are currently employed, it is most likely your employer will never know you filed for bankruptcy protection. The only exception would be if court orders Chapter 13 payments to satisfy your income deduction order. Otherwise, you are under no obligation to disclose your filing to your employer. Additionally, your employer cannot fire you because you filed. They are also prohibited from reducing your pay, demoting you or engaging in any other discriminatory act.

If you are looking for employment, however, a bankruptcy filing can sometimes pose an issue. While it’s illegal not to hire someone because of past credit issues, a potential employer has no obligation to admit that a bad credit history is the reason they didn’t hire you. The most important thing to remember is to remain upfront with potential employers. Today many employers will pull credit reports for prospective employees, and bankruptcy will stand out on your report. Employers are looking for honesty. If you explain why you had to file — particularly if it was due to circumstances beyond your control, such as high medical bills and poor insurance coverage — many employers will appreciate your openness.

One way to mitigate the impact of the bankruptcy is to have solid recommendations lined up, both professional and personal. Any prior managers, especially those you worked for while you had financial issues, can vouch for both your skills and desire to improve your situation. Personal references help with your reputation as well.

If you are having credit issues or are considering filing bankruptcy, meet with a bankruptcy attorney prior to making any decisions. An Atlanta personal bankruptcy attorney can help you navigate the complex world of bankruptcy and make the right decision for yourself and your family.

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