Call For Your Free Quote: 305-443-6321

Will Filing for Bankruptcy Affect Your Employment Eligibility?


Filing for bankruptcy is stressful as it is, and worrying about the potential ramifications can cause further worry. For example, will an employer refuse to hire you if you’ve filed for Chapter 7 bankruptcy?

There are certain laws in the United States Bankruptcy Code that place limits on employers and how they can use your financial situation information to determine whether or not to hire you. For starters, federal, state and local governments cannot fire you because of a bankruptcy filing nor can they use the filing as a reason not to hire you. State laws prohibit private employers from firing someone but in terms of hiring, it could vary by state. To be safe, it’s something you may wish to discuss thoroughly with your bankruptcy attorney.

The Fair Credit Reporting Act (FCRA) also has restrictions on how an employer is allowed to use a prospective employee’s credit information but you should keep in mind something. If you’re a job seeker and you refuse to allow a prospective employer to check your credit history, there is a strong possibility you will be turned down for the job regardless of your bankruptcy filing.

This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP.  Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more.  Call 305-676-7545 to speak with one of our attorneys and receive a free consultation including a Miami insurance attorney.  We look forward to working with you.

This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.