Applying Decades Of Experience To Solve Modern Legal Issues

How Filing for Bankruptcy Could Help You Get Hired

On Behalf of | Sep 18, 2019 | Bankruptcy

Filing for bankruptcy may be considered a counter-productive move if you are looking for work. But bankruptcy filing could actually help you find a new job.

When you are deeply in debt, you may fear that filing for bankruptcy would harm your chances of landing a job interview. However, filing for bankruptcy could actually assist you in your job search, as absurd as it may sound.

In fact, studies prove that bankruptcy has “zero effect” on your job prospects. The fact that you filed for bankruptcy within the past ten years is unlikely to affect your chances of getting hired, according to the National Bureau of Economic Research.

Yes, it is true that filing for bankruptcy is not for everyone. However, many do not realize that doing so is the only right option in their circumstances. Discuss your particular situation with a Council Bluffs bankruptcy attorney at Telpner Peterson Law Firm, LLP, to explore your options.

Here are the three surprising benefits of filing for bankruptcy if you are on a job hunt.

  • Securing Your Future Wages

If you filed for bankruptcy in Council Bluffs or elsewhere in Iowa to stop debt collector harassment, you are most likely in debt. When you are in debt, your future wages are at risk.

Regardless of whether you have a job or are currently unemployed, creditors can go after your earnings. Filing for bankruptcy allows you to protect your future wages from being ripped out of your next paycheck.

In most bankruptcy cases, your protection from creditors begins immediately after the filing.

However, the National Bankruptcy Forum warns job seekers that some employers can deny employment because of an applicant’s bankruptcy.

  • Showing Your Proactive Steps

Many people in debt worry that filing for bankruptcy may paint them in a negative light in front of their prospective employer. In reality, the opposite is true.

Filing for bankruptcy demonstrates that you are willing to take proactive steps to fix your financial issues.

That is of course, if your employer checks your credit history. A 2012 survey by the Society for Human Resource Management found that only 47 percent of all employers bother to review job applicants’ credit histories.

  • Eliminating the Risk of Wage Garnishment

“Wage garnishment” are two very unpleasant words to hear for any debtor. But contrary to popular belief, many employers may actually favor job candidates who filed for bankruptcy over applicants who did not do so.

When vetting applicants, many employers understand that by hiring someone who filed for bankruptcy, they eliminate the risk of having to follow wage garnishment orders.

Hiring an indebted candidate, meanwhile, exposes them to the risk of having to comply with wage garnishment orders on behalf of creditors, which can be inconvenient and annoying.

What to Say During a Job Interview About Your Bankruptcy

Many debtors looking for a job worry about what they should say to their prospective employer about their bankruptcy during a job interview.

Being honest may not sound like useful advice, but it does not make it any less critical. It is in your best interest to address your bankruptcy beforehand. For example, a good tip would be to mention that you have taken Credit Counseling courses as part of your bankruptcy requirement.

Before filing, it is advised to prepare for bankruptcy. If you consider filing for bankruptcy, talk to our Council Bluffs bankruptcy attorney from Telpner Peterson Law Firm, LLP. Discuss your particular situation by calling at 712-309-3738 to get a free consultation.