Why Bankruptcy Won’t Hurt Your Employment Status

If you’re considering filing for bankruptcy, part of the stress that goes along with making the decision has to do with filtering through what information is actually true about bankruptcy. Many myths revolve around how bankruptcy may affect employment. Here are the real facts you need to know.

You cannot be fired from your job for filing for bankruptcy.

Bankruptcy is provided for in the Constitution, and it designed to provide people with debt relief that they need, not to create avenues through which they can punished for debts. Under the law, government and private employees are prohibited from firing you for filing for bankruptcy. Further, the law states that government employers cannot refuse to hire you based on having a bankruptcy on your records. However, the law does not say the same thing about private employers, though only employers who are considering you for a job that involves financial management are likely to use your bankruptcy in a decision about your employment.

Your bankruptcy may affect some professional licenses.

Professional licenses are more of a gray area. You cannot be denied or lose a professional license based solely on bankruptcy. However, some professional licenses have morality clauses that include financial management in the criteria that they consider. Your bankruptcy attorney can help you determine how your filing may affect your license.

Get the facts about bankruptcy and how it may affect you from the experienced attorneys at Cutler & Associates, Ltd. To talk to a bankruptcy attorney in Schaumburg, Aurora, and around Chicagoland, dial (847) 961-4572.