Bankruptcy filing may not harm possible employment

On Behalf of | Mar 27, 2020 | Chapter 7 Bankruptcy |

In North Carolina, those who consider filing for bankruptcy may be told that the long-term impact of their filing is that they will have trouble finding a new job or even keeping the one that they have. However, new research shows that this may not be as much a cause for worry as it had been in the past.

Previous research had found that bankruptcy damaged job prospects as employers thought that someone who had trouble with their debts was unreliable. However, a new study found that there was very little statistical difference in job hunting success between someone who had a bankruptcy on their record versus someone who had it removed from theirs. Admittedly, this surprised the researchers who also were aware of the previous beliefs.

There may be reasons behind this that are not based on a statistical anomaly. There have now been several instances this century of widespread economic dislocation that was not the fault of the debtor in any way. With it, they lose their ability to pay back the debt that they owe. However, this is not an indicator of their reliability in any way. Society may be coming to understand and accept that bankruptcy is not always the debtor’s fault.

Those who are in financial distress and wondering how they can get a fresh start free from the debt that burdens them may consider a personal bankruptcy filing. A bankruptcy attorney may help their client explore this possibility and assist in figuring out whether the bankruptcy laws offer protection for them. While bankruptcy is not the right option for every person, it may help many debtors get the fresh start in life that they need.