Can Filing for Bankruptcy in Ohio Affect My Ability to Get a Job?

Background Checks Will Include a Credit Check

A company can request to look into a potential employee at any time. Many times, an employer may run a check on a candidate before extending a job offer, or even setting up an interview. Checks can happen at any time during the interview process. Sometimes employers will use this to look into a potential employee as the final step for onboarding. All reports come with a credit report. A credit request will give employers access to your history which will include if you have filed for bankruptcy. Employers can use the information they get from a request to assess a person’s level of responsibility that is needed for the job in question. This may end up being the reason you don’t get offered a position.

When Will Bankruptcy Filings Fall Off My Credit Report?

The type of bankruptcy you file will determine the length of time the bankruptcy will stay on your credit request. Bankruptcies can negatively affect your credit score in a significant way. Though the affect will lessen over time, it is important to know all the ways it can affect your life prior to filing. Below are the different types of bankruptcy filings and how long they may last on your credit request.

Chapter 7

Chapter 7 bankruptcy is a type of bankruptcy than call allow an individual or a business to eliminate the majority of their depts through liquidation. This is for individuals who can no longer make regular debt payments and businesses who are planning on terminating. Liquidating individual or businesses assets will allow money to be made that will be distributed to creditors. A trustee will be appointed and work with the debtor on selling nonexempt assets. In some cases, an individual may be able to keep some personal items and real estate. Going through this process will hurt your score for a few years, but it may be the best way to find relief. Chapter 7 bankruptcy can stay on an individual’s credit score for up to 10 years.

Chapter 11

Chapter 11 bankruptcy is a process that allows an individual to acknowledge their debt and restructure their finances. This process typically allows individuals to keep their assets without the need for liquidation. This type of bankruptcy is typically used by businesses. There are some individuals who have find that they have enough debt that exceeds the max limit that is set federally. If this is something you have proceeded with, it can stay on your credit request for 10 years.

Chapter 12

Chapter 12 bankruptcy is used by family farmers or fishermen. This allows businesses and families to reorganize their debts while also continuing to stay in business. This type of bankruptcy can stay on your credit score for seven years.

Chapter 13

Chapter 13 bankruptcy allows an individual to acknowledge their depts and pay them overtime. This is a good option for someone who has a steady income. You will also be able to keep all of your possessions and not have to face liquidation. You can also include a student loan in your bankruptcy. This type of bankruptcy will stay on your credit score for seven years from the date that you file.

What Types of Jobs May Have an Issue with a Personal Bankruptcy Filing?

Not all companies will run a check or care that you have filed for bankruptcy. There are a few that may have an issue with this and go against their company policies. Below is a list of what some of those positions may be and why you may want to think twice if you are applying for those positions.

Private Employers

A private employer may run checks to keep their circle of employees highly monitored. Positions that involve handing money or finances will usually include checks and require a certain expectation of personal responsibility that can translate into a professional setting. Some employers may see a bankruptcy in a credit request as a concern if you are handling money or working with sensitive information. They may look at this information as a way to look at an individual’s level of responsibility.

Government Jobs

Government positions will require a request and will see if you filed for bankruptcy. If the position you are interviewing for is related to the handing of money, they may not be lenient with the fact that you filed for bankruptcy. If this is not your first time filing bankruptcy, this may raise more questions and show the employer that you have a pattern for financial irresponsibility.

Getting Security Clearance for Work

If you are looking into a now potential role that will require a security clearance, a bankruptcy filing on a credit request may raise red flags. This will usually only be an issue if it is a filing based on financial irresponsibility. A potential employer may see this as untrustworthy which may result in the denial of getting security clearance.

A Bankruptcy Cannot Be the Only Reason of Denied Employment

It is important to note that an employer cannot deny you of a job solely based on the fact that you have filed for bankruptcy. You are protected by local and federal law. There are federal laws in place that protect employees from discrimination based on bankruptcy. It is important to be prepared to answer any questions about your bankruptcy if it ever gets brought up in an interview. Law states that they cannot deny you of employment solely on bankruptcy. They are allowed the right to assess if your filing may lead to irresponsibility which can be a reason why you may not get the offer. If you have made a bankruptcy filing due to medical expenses, you may not have as many issues.

See Something on Your Credit Report That Doesn’t Look Right?

Did you order your own credit request and see something that doesn’t look right? Identity theft can happen to anyone and can result in someone filing for bankruptcy under your name. It was reported that there were over 1 million identity theft reports in 2023. It is possible that there may be a wrong filing on your request that may affect your chances at a job. If you think your identity was stolen and there is a bankruptcy mistakenly filed under your name, you should start by calling the creditor on the account you do not recognize. They will work with you on reporting the fraudulent filing and help guide you on your next steps. It is also important to file a motion to open the bankruptcy case so you can begin to get this removed from your file.

You Can Find a Job Even After Filing for Bankruptcy

Though it may cause some extra explanations, getting a job after bankruptcy doesn’t have to be hard. The most important thing you can do is start by understanding the type of bankruptcy you proceeded with and understand if the amount of income you have will affect your debt repayment plan. You may also want to find an explanation incase potential employers ask about the bankruptcy during an interview. It is important to be prepared and communicate that you are a hardworking and reliable individual. If you need more help understanding your options and your rights in regard to bankruptcy filings, Jump Legal is here to help guide you. Our attorneys are experts at understanding the ins and outs of bankruptcy and we can help ensure that you are protected before and after you find a new job. It is time to take control of your life and eliminate your debt.

Give Jump Legal a Call Today for Bankruptcy Help!