Effects of Bankruptcy Not So Bad For Employed -- Unemployed in Tennessee
November 30, 2011 /24-7PressRelease/ -- Most people contemplating bankruptcy are concerned about the long-term effect of filing bankruptcy. People struggling with debt problems in Nashville often wonder how they can rebuild their credit after bankruptcy and worry about the potential impact of a bankruptcy on their employment. This article covers what people contemplating bankruptcy should know about the impact of bankruptcy on employment.
Bankruptcy Laws Protect Employed People from Discrimination
If you are already employed, you may breathe a sigh of relief. The Bankruptcy Code, which contains the laws governing bankruptcy, expressly prohibits a private employer from firing or discriminating against an employee who has filed for bankruptcy or who is related to someone who has filed for bankruptcy.
This is not to say that filing bankruptcy will become a shield to all bad conduct. For instance, a person cannot steal from their employer, file for bankruptcy and claim that discrimination is the basis of their termination. The law only protects employees if a bankruptcy filing is the sole reason for dismissal.
Jobseekers Have Rights as Well
Although laws protect the employed, the same cannot be said for the unemployed. Even so, people applying for jobs do have some rights. Many people do not realize that potential employers cannot ask certain questions. Employment lawyer, Steven Mitchell Sack, told CareerBuilder.com that job applicants do not have to answer the following questions:
- Do you have any credit problems?
- Have you filed for bankruptcy?
- Are your wages subject to garnishment?
These questions can be handled by pleasantly declining to answer. Prospective employers who are really interested in their applicants` credit may conduct credit checks. But, to do so, they need written permission from their applicants.
Even in the technology-driven age, people may be surprised to learn that many prospective employers don`t even bother with credit checks. The Society for Human Resource Management conducted a poll, which revealed that only 13 percent of employers run a credit check for every job applicant.
Credit checks can be expected in certain kinds of jobs. Any job that holds a fiduciary responsibility will probably run a credit check. For example, anyone applying for a bookkeeper, bank teller, payroll person, accounting or other financial role should anticipate a credit check.
Credit checks will reveal a bankruptcy filing, but even this may not close the door to employment. Most employers will give an applicant the opportunity to explain the circumstances that lead to bankruptcy. The economic climate has been such that most people know someone who has filed for bankruptcy. The stigma of bankruptcy has melted away for most.
There are few employers who will use a bankruptcy filing as the sole measure of a candidate. A job applicant who is able to show off their other qualities may compel a potential employer to overlook a bankruptcy filing. Solid recommendations go a long way to helping an applicant shine over others.
A Nashville Bankruptcy Lawyer Can Answer Your Questions
There are still many myths about bankruptcy. Sorting through the good information and bad information on the internet can be difficult. Understanding the truth about bankruptcy can make the decision to proceed much more comfortable.
Bankruptcy is designed to give people a fresh start. If you are buried in debt and need help stopping creditor harassment, a Tennessee bankruptcy attorney can educate you about bankruptcy and review your options with you.
Article provided by David F. Cannon
Visit us at http://www.nashvillebankruptcylaw.com
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