Cani Be Denied A Job Based On A Bankruptcy And Judgmentnoted On My Credit Report
Recently denied a job based on bankruptcy and judgment on credit report. Specifically asked about bankruptcy details: I can present his case to my supervisor but first Im going to need a current statement to confirm the current balance of the bankruptcy and history of payments from Of the criminal background and credit check the following was all that was mentioned: CREDIT: Civil Judgment Entered 2/2009 $9,000; Ch. 13 Bankruptcy entered 3/2009 $390,993. Decision was: We have reviewed your application and regret we are unable to appoint you. Can they do that? Isnt there protection for discriminatory treatment?
Asked on October 1, 2010 under Employment Labor Law, Texas
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Security Clearances Bankruptcy And Employment
Many jobs require a security clearance. If you’re a member of the armed forces or an employee of the CIA, FBI, another government agency, or a private company that contracts with the government, you might have a security clearance.
Do you risk losing your security clearance if you file for bankruptcy?
Probably notand the opposite might be true. According to credit counselors for the military and the CIA, a person with financial problemsparticularly someone with a lot of debtis at high risk of being blackmailed. By filing for bankruptcy and getting rid of the debts, you substantially lower that risk. Bankruptcy usually works more in your favor than to your detriment.
What To Do If Your Rights Have Been Violated
Its not uncommon for an employer to violate the law when reviewing an individuals credit report. Some major employers have been fined in recent years for violating state and federal laws.
If you think the employer has violated the Fair Credit Reporting Act during this process, you can report them to your state or local government if they have specific laws pertaining to employer credit checks. Otherwise, you can report them to the Consumer Financial Protection Bureau and the Federal Trade Commission .
The consumer can report to the FTC or the CFPB, but those agencies dont take action on behalf of individuals, said consumer attorney Jay S. Fleischman, consumer attorney at Shaev & Fleischman, P.C. For someone to get a resolution of the problem, theyd want to hire a lawyer.
Hiring a lawyer can be expensive, but if you know multiple people who have been violated by the same company, you can consider hiring a lawyer together.
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Ask A Lawyer: Can Bankruptcy Affect Your Job Prospects
Filing bankruptcy means you get a fresh start after debt took control of your life. But, as you probably already know, the chance to start over does come at a cost. Can filing for bankruptcy affect your employment or job prospects?
Generally speaking, personal bankruptcy won’t affect your current employment, though it could potentially prevent you from getting certain jobs in the private sector down the road. Read on to find out about the laws and practicalities that apply.
May Can I Be Fired If I File For Bankruptcy
One question I am often asked is whether someone can be fired if they file for bankruptcy. The short answer is, No.
The Bankruptcy Code contains specific protections for people who file. Section 525 says, No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or her been a debtor under this titlesolely because such debtor is or has been a debtor under this title or has not paid a debt that is dischargeable in a case under this title. In other words, if youre fired solely because you filed for bankruptcy, your employer is breaking the law, and you can sue for losses and damages.
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No Bankruptcy Discrimination In Government Issued Licenses
Under the law, no governmental unit may deny, revoke, suspend, or refuse to renew a license of a person who has filed for bankruptcy because:
- the person filed for bankruptcy
- was insolvent before the bankruptcy discharge, or
- has not paid a debt that has been discharged or will be discharged in a pending bankruptcy.
Similar to the protection for employment actions, the licensing protection extends to people who are associated with someone who has filed for bankruptcy.
This is important if you have a job which requires you to maintain a professional license. However, there are a few very limited exceptions relating to the agriculture industry.
If I File For Bankruptcy Will I Be Able To Get A Job
In most cases, your ability to obtain employment should not be impacted by an insolvency filing, whether thats a consumer proposal or bankruptcy.; While in general you are not required to disclose that you have filed bankruptcy or a consumer proposal, some employers may ask if you are currently bankrupt as part of the application process. They may also choose to conduct an insolvency search or credit check as part of the hiring process. This is more common if you are applying for a position that involves significant financial trust.
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Losing A Job And Bankruptcy
The federal bankruptcy code prohibits employers from terminating employees who have filed for bankruptcy with the sole reason being that they filed for bankruptcy. However, these employers are not prohibited from firing an employee if there are other workplace problems linked to that individual. The following issues may be brought up that lead to an employees termination:
- Loss of productivity due to bankruptcy stress
- Missing work for court dates
- Poor work attitude due to bankruptcy-related distress
- Lacking a means to commute to work
These issues can prove very serious for an employee, as an employer does not need to take bankruptcy into consideration for terminating that employee for associated problems.
It is important to remember that an employee cannot be fired only if they are filing for bankruptcy, but may be fired if an employer files for bankruptcy.
How Will Bankruptcy Affect My Professional License
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In a Nutshell
There are many benefits to filing bankruptcy, such as the automatic stay, which protects you until your debt is discharged. However, before getting the bankruptcy ball rolling, itâs important to consider how filing could affect other aspects of your life, including your career and professional qualifications. This article will discuss how bankruptcy will, and probably wonât, affect your professional license and what you should know before you file.
Written byAttorney Amelia Niemi.
The decision of whether to file bankruptcy can feel like a big deal. There are many benefits to filing bankruptcy, such as the automatic stay, which stops all collection actions and can give you a fresh start on your financial life after discharging credit card and medical debt.
However, before getting the bankruptcy ball rolling, itâs important to consider how filing could affect other aspects of your life, including your career and professional qualifications. This article will discuss how bankruptcy will, and probably wonât, affect your professional license and what you should know before you file.
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Talk To A Bankruptcy Lawyer
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Effect Of Bankruptcy On Job Applicants
No federal, state, or local government agency can consider your bankruptcy when deciding whether to hire you. Private employers, however, aren’t constrained by a similar rule, and some people find that having a bankruptcy in their past comes back to haunt them.
Many private employers conduct a credit check on job applicants. The employer will find out about your bankruptcy from the credit report. A bankruptcy filing causes problems mainly for those applying for jobs that require them to deal with money, such as bookkeeping, accounting, payroll, and so on.
While an employer needs your permission to run a credit check, employers can also refuse to hire you if you don’t consent. If you’re asked to give this authorization, consider speaking candidly about what the employer will find in your file. Being honest and upfront might outweigh the negative effects of the bankruptcy filing.
Learn about other things to consider before filing in Bankruptcy: Should I File?
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Will Bankruptcy Affect My Future Employment
When it comes to applying for jobs and potential employment, no federal, state, or local government agency can consider your bankruptcy when deciding to hire you. Only private employers retain the power to do so.
Jobs that require you to deal with money tend to be warier about hiring those who have filed for bankruptcy. Its also important to note that those private employers tend to do credit checks on job applicants and filing for bankruptcy would appear on your .
Your Bankruptcy Filing Could Affect Your Search For A New Job
Are you planning on looking for a new place of employment? If youre interested in working for a federal, state or local government agency, filing for bankruptcy wont present a problem its not a factor that can be legally considered during the hiring process.
Private employers arent bound by the same rule. A bankruptcy filing could affect your ability to land a new job in the financial sector or one that involves dealing with money. That said, speaking candidly when youre being interviewed can be enough to outweigh any negative views others may have about your bankruptcy.
If you have questions or concerns about filing for bankruptcy, the Law Office of Davis & Jones, P.C., is here to provide expert answers and advice.
Our highly skilled legal team has a combined 40 years of experience in bankruptcy law.; We can help you down the road to a better financial future. We offer free consultations to residents of the Salt Lake City metropolitan area, the Wasatch Front and the surrounding Utah communities. To speak with a seasoned Utah bankruptcy attorney, contact our office today.
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In Most Situations Bankruptcy Won’t Affect Your Current Employment; However It Might Come Into Play If You Are Applying For A Job In Private Industry
By Cara O’Neill, Attorney
If you plan to file for bankruptcy, you might be worried about the effect it could have on your employment. For instance, many people wonder:
- Will an employer find out about a Chapter 7 or Chapter 13 bankruptcy?
- Can an employer fire an employee who has filed for bankruptcy?
- Is it legal to pass over a job applicant due to a bankruptcy filing?
Although your employer might learn about your bankruptcy case, rest assured that in most situations your bankruptcy won’t affect your current employment. However, it might prevent you from getting a job in private industry later.
You’ll find a complete overview of the bankruptcy process in What You Need to Know to File for Bankruptcy in 2021.
Will I Lose My Job If I File For Bankruptcy
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Its common for people considering bankruptcy to be concerned about the impact a bankruptcy filing may have on other areas of their lives. Some of the most common concerns include the impact of bankruptcy on access to credit, how bankruptcy will affect existing property such as homes and cars, and the possibility of job loss.
Its not surprising that people already struggling with debt would be concerned about loss of income. However, for most bankruptcy petitioners, neither the bankruptcy filing nor the bankruptcy discharge is likely to affect employment. In part, thats because federal law protects most workers from being discharged because of a bankruptcy filing. In part, its because many employers never even know that an employee filed for bankruptcy protection. And, many wont care, or may even see the bankruptcy filing as a step in the right direction.
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Can I Lose My Job If I File Bankruptcy
It is illegal in Canada for an employer to fire someone simply because they filed bankruptcy.
Certain professions, however, have professional conduct standards that require someone to disclose if they are bankrupt.; Often these are professions that involve management of money and trust accounts such as an insurance/investment broker, lawyer or accountant. In some cases, their professional designation may be affected. In others, the type of work they can do is limited until after the bankruptcy is discharged.;
We explain later in this post how a consumer proposal can remedy the employment challenges faced by a bankruptcy filing.
In general, if the debts you owe are personal in nature and not the result of fraudulent or irresponsible business activity, an insolvency filing shouldnt impact you professionally, but its still important to check.
How Filing For Bankruptcy Will Affect Your Job Applications
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Can I Be Fired For Filing Bankruptcy
If you plan to file for bankruptcy or already have filed, you may be wondering if that decision will have any effect on your job. ;Can you be fired or discriminated against for filing for bankruptcy? ;In Ohio, the answer is no. ;You cannot be fired solely because you filed for bankruptcy. ;Your employer is also prohibited from discriminating against you concerning the terms and conditions of your employment because you filed for bankruptcy. ;This means your employer cannot reduce your salary or demote you solely because you filed for bankruptcy.
11 U.S.C. Section 525 provides, in relevant part, that o private employer may terminate the employment of, or discriminate concerning employment against, an individual who is or has been a debtor under this titlesolely because such a debtor or bankrupt has not paid a debt that is dischargeable under this title. ;The 6th Circuit Court of Appeals addressed this issue in White v. Kentuckiana Livestock Market, Inc., where it said, The Bankruptcy Code prohibits private employers from discharging bankrupt employees solely because of the employees having invoked the protection of the bankruptcy laws.
If you are contemplating filing bankruptcy or already have and need an attorney to represent you, consider contacting Laura Nesbitt of the Nesbitt Law Firm or Danielle Demming of Jump Legal LLC.
If you are looking for a bankruptcy discrimination attorney, please contact the Ohio Employment Lawyers at The Friedmann Firm today.
Will Bankruptcy Affect My Current Job
Its safe to say you wont lose your job solely due to filing for bankruptcy. No employer government or private can use your filing for bankruptcy as a reason to change the terms or conditions of your employment. This means they cant use it to demote you, reduce your salary, take away responsibilities, or fire you.
Keep in mind that other valid reasons exist for firing you, such as incompetence, dishonesty, tardiness, etc. Your filing for bankruptcy wont hide or protect you from those reasons. But if none of those exist and you are fired shortly after filing for bankruptcy, you might have a case against the employer for illegal bankruptcy discrimination.
In most cases, especially with Chapter 7 bankruptcy, your employer will not find out about your filing. But if a creditor has sued you, obtained a judgment, and began garnishing your wages, then your employer will be made aware. This is because, to stop the garnishment, your employer must know about your bankruptcy.
In some cases, under Chapter 13 bankruptcy your employer will know of your filing. If you have a regular job with a regular income, the judge may order your payments to be automatically deducted from your wages. In this instance, your employer serves as almost a collection agency, making sure you honor your Chapter 13 plan.
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