Losing a job after filing bankruptcy can create a lot of uncertainty. Fortunately, though, Section 525 of the U.S. Bankruptcy Court forbids employers from discriminating against people on the basis of having filed bankruptcy.
Of course, you may still encounter challenges in your pursuit of new employment, but the obstacles you’ll face are similar to those encountered by millions of other job seekers.
If you have received your debt discharge from the bankruptcy court, that cannot be revoked because of job loss. If you are in the middle of a Chapter 13 repayment plan, you may be able to convert it to a Chapter 7 and have your debts discharged that way. Speak with a bankruptcy lawyer about your options if you find yourself in this situation.
Millions of Americans have successfully filed bankruptcy, and it is almost certain that a healthy percentage of these filers had to seek a new job after filing bankruptcy.
While having a bankruptcy on your record may pose some obstacles in your job hunt, using these strategies may help make the interviewing process less intimidating:
While these may be helpful interviewing tactics, some employers may also be concerned about an applicant’s credit score.
While bankruptcy may have an impact on credit scores, filers should begin to improve credit after bankruptcy, further enhancing their appeal as an employee.
Rebuilding credit often requires:
Although it seems obvious, responsibly using new forms of credit is a crucial step towards rebuilding credit, especially for people who lose their job after filing bankruptcy.
If you are able to rebuild your credit, and you approach the interviewing process with confidence, losing a job after bankruptcy may simply be a bridge to better employment.
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