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How do you explain a bankruptcy to potential employers?

On Behalf of | May 7, 2016 | Debt Relief, Firm News

Many Arkansans find that bankruptcy is the best way to get out from under their debt and get a fresh start on their financial future. Part of that fresh start may include finding a job or looking for a new job. However, with companies now often running credit checks on potential employees, what happens when they see the bankruptcy on your record? Can it prevent you from being hired?

The bankruptcy code places greater restrictions on government employers regarding using bankruptcy as a reason for not hiring or promoting someone. However, private employers don’t have those same restrictions. Of course, any potential employer can choose not to hire someone for any number of reasons. Often, people never know why someone else was chosen over them.

Often it’s best when you know that a credit check is going to be done to be up front about the bankruptcy, since the employer will see it. Explain why you made this choice and how you are working to rebuild your credit and get your finances back on track.

Tell the employer what you’ve learned from the experience. You may also want to note that it’s much easier for you to focus on work now that you an unsustainable debt situation hanging over you.

By being honest about the situation, you show a potential employer that:

— You’re not trying to hide anything.– You realized a problem and took steps to resolve it.– You’re motivated to get back on track.

Remember that it’s probably preferable for an employer to see a bankruptcy on a your credit report, particularly if you’ve turned things around, than numerous debts, delinquent payments and maxed-out credit cards.

If you’re considering bankruptcy, talk with an experienced Arkansas bankruptcy attorney to determine whether it’s the best debt relief option for you. If it is, he or she can help you through the process as you work to get your financial life in order.

Source: Bankrate, “Can stigma of bankruptcy hurt a job hunt?,” Justin Harelik, accessed May 05, 2016