Bankruptcy and Employment
When considering filing for bankruptcy there are a number of things to consider. One common question is how bankruptcy will affect finding new employment or government employment or security clearances. The answer depends on a number of circumstances. Some employers may be interested in whether you have filed for bankruptcy as a measure of financial responsibility. With respect to applications you, many applications state that if there is any fraud or intentional misrepresentation on the application you can be terminated. In this case it would be better to be honest about your bankruptcy and perhaps explain the situation than to face potential termination at a later date.
In some instances, government employers may actually encourage an individual with a lot of debt to file for bankruptcy to decrease their debt to income ratio. This can be true especially where the individual debtor deals with money. An individual with a considerable amount of debt may be more likely to be tempted to divert funds or sell secrets of a company or government for sums of money.
The bankruptcy code does state than an individual cannot be passed up for a security clearance or a promotion simply because he/she has filed for bankruptcy. The military has addressed this issue explaining that such decisions are based on a number of considerations, but bankruptcy can play a role in the decision. Not filing may make you more of a risk, as explained above; however, some may look at filing as a way out of paying for obligations. In this case, you may be able to explain the circumstances surrounding your filing, whether it was largely medical issues or if there was on trigger. At the end of the day, it can affect security clearances, but filing for bankruptcy is not an automatic bar to a security clearance or a promotion in a government or military position. According to the military, your relationships with your chain of command and your reputation in your field are equally, if not more important in making such decisions. Private employers may be able to exercise much more discretion pursuant to the laws of your state.
If you are concerned about finding new employment, or how bankruptcy may affect your current career you should speak with a St. Louis Bankruptcy Attorney today!