People who file for bankruptcy may be surprised to discover that their current or potential employers are legally allowed to find out about their filing. Many organizations are now doing background checks on job applicants, and these checks may involve determining if someone has filed for bankruptcy.
While some people think that this is an invasion of privacy, according to the government, it is completely legal. Therefore, if an individual files for bankruptcy and is looking for a job, they should be prepared to have a potential employer find out about it. According to one well-known financial adviser, the best strategy is to be honest and upfront with employers.
The advisor states that the best course of action is to explain to a potential employer what led to the bankruptcy. In many cases, people file due to financial issues that developed through no fault of their own. Additionally, if someone admits their past errors and states that they are using the bankruptcy as an important lesson on financial management, the filing may not reduce their chances of employment.
When filing for Chapter 13, it is important to understand how the law works and what is involved in the process. Bankruptcy is designed to help people who are unable to get out of debt. However, if someone does not file correctly or follow the process, filing for bankruptcy may not be helpful. A lawyer might be able to help someone understand what the requirements are for filing different types of bankruptcy, how the Chapter 13 repayment process works and what effect filing may have on their financial situation.