can i file for bankruptcy if i have a job

can i file for bankruptcy if i have a job

Can I File for Bankruptcy if I Have a Job?

Bankruptcy can be an intimidating process. Many debtors worry about filing for bankruptcy because they fear it means they won’t be able to find or keep a job. However, filing for bankruptcy while employed may be one of the best things you can do to get a fresh financial start.

When Filing is the Best Option

If you’re considering filing for bankruptcy, it’s likely because your debts have overwhelmed you. With a job, you may be able to manage the influx of financial responsibilities and make regular payments, but considering whether this will lead you to financial stability long-term should be at the top of your agenda.

Bankruptcy could be the best option for you if:

  • You’re struggling to make payments despite working a current job.
  • Your job prospects for the foreseeable future are uncertain due to health or other extenuating circumstances.
  • Your wages will be used by creditors to repay your debts and you are unable to meet your needed expenses.

How Bankruptcy Affects Employment

Though declared bankruptcies are public record, filing does not restrict you from being employed. In the U.S., employers are not allowed to legally discriminate employees or potential employees based on bankruptcy.

That said, you should be honest with potential employers about your credit history. Most employers will view a declared bankruptcy as evidence of your financial maturity and willingness to take responsibility for past financial mistakes.

Filing and Future Goals

Before you file, make sure you understand that a bankruptcy filing can stay on your credit report for 7-10 years. If your career goals include seeking promotions or moving up the ranks, you belief that your credit file could be an impediment to your future success.

Learn about the bankruptcy process, the different plans available and talk to an attorney to help you make an informed decision. Once you have filed, you can start taking steps to rebuild your credit which may put you in a healthier position for years to come.


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