Could your bad credit have an effect on your employment opportunities?
Charlotte Bankruptcy Attorney Victorianne C. Maxwell of Maxwell Law Firm, PLLC notes that January is the best time to look for job, because more positions become open based on employees retiring and or moving on to new positions. Certain employers such as governmental agencies, jobs requiring security clearances, and or insurance companies run background and credit histories on job applicants. It is perfectly legal to run a credit history on applicant, upon receiving their informed consent.
HOW CAN EMPLOYERS VIEW MY NEGATIVE CREDIT HISTORY
Although employers can not discriminate based on you filing for bankruptcy, they can reject your application based on negative items on your credit file such as judgments, repossessions, foreclosures, and collection accounts. Often times an employer will indicate during the application process that your application can be rejected or employment not be offered based on negative credit history. Why do you ask would employers be so concerned with your credit history? Some employers look at a negative credit history as a sign of irresponsibility and or an inability to properly manage your finances. An employee with judgments and other financial woes may be more likely to commit fraud and or embezzle funds from the company or agency. Not saying that this is always true, but it is certainly an impression that most employers now have. For example, it is not likely that IRS will hire you have tax liens.
EMPLOYERS MAY NOT DISCRIMINATE AGAINST YOU BECAUSE YOU HAVE FILED FOR BANKRUPTCY
To start, the Bankruptcy Code provides at 11 USC 525 that employment discrimination are prohibited by public and private employers against individuals that file for bankruptcy protection. A governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title or a bankrupt or a debtor under the Bankruptcy Act, or another person with whom such bankrupt or debtor has been associated, solely because such bankrupt or debtor is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of the case under this title, or during the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.” So basically we know that you cannot be fired per se for filing for bankruptcy. Now they can conduct an investigation to see if you are in violation of your clearance. Please note that unpaid bills and delinquencies, tax debt can viewed as a violation of a security clearance but bankruptcy may not.
HOW DOES BANKRUPTCY CLEAN MY CREDIT UP?
Bankruptcy is a fresh start on your credit file, depending on the chapter of bankruptcy you file, it could be within a few months or years. Once you receive your discharge, you will be able to start the clock back and start rebuilding your credit immediately. You can get a FHA mortgage two years after receiving your discharge from a chapter 7 case and immediately apply for a car loan. Speak with a Bankruptcy Attorney in your area for your options.
If you need assistance with unpaid medical bills, preventing foreclosure , preventing repossession, reducing financial liabilities, stopping wage garnishments, preventing collection calls, debt settlement, reducing or eliminating tax debt, and or rebuilding your credit consider consulting with us for your options. Chirnese L. Liverpool assists clients with filing for bankruptcy in California as well as all of Nevada. Our office represents clients with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, and chapter 13 bankruptcy representation. We can be reached at (818) 714-2200.
Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-780-1100. Save an additional 25% off the fees by scheduling your appointment online. Your consultation will be free if you schedule your appointment during the first week of January of 2012 online.
California Bankruptcy Attorney Chirnese L. Liverpool assists debtors in Los Angeles area. Her office can be contacted by calling 818-714-2200.
