Filing for Chapter 13 bankruptcy or any other chapter might seem like your best bet to free yourself from burdensome debt. Even so, you may want to think about the effect bankruptcy will have on your future, such as whether filing for bankruptcy will make it harder to secure a job.
In general, many employers do not see bankruptcy as a problem for their applicants. This is not always true, however. The Motley Fool explains some reasons why employers might consider bankruptcy a hurdle you cannot overcome.
Finding out about your bankruptcy
It is possible that an employer who interviews you about a job will never find out about your bankruptcy. In order to discover your bankruptcy, the employer would have to conduct a credit check on you. Many employers are not interested in checking your personal credit history, so you should have little trouble landing a job that you have the qualifications for.
But in some cases an employer will want a check on your credit history. This is something you must give permission for. You may refuse, but the employer would likely decide not to consider your application any further.
Types of jobs that require credit checks
Certain types of jobs are more likely to require credit checks. These jobs generally involve handling money, and a credit check may tell an employer whether an applicant has had money problems in the past. You may find an employer will want a credit history check if you apply to be an accountant or for a position in retail, or if you pursue a job that handles sensitive sales data.
Bankruptcy may not disqualify you
Even if an employer does find out about your bankruptcy, it does not mean you have no hope of getting the job you want. Workplaces look at other factors which may help land you a job in spite of your previous financial history.
You may also have a chance to explain your side of the story during a job interview. You could talk about why you entered bankruptcy and what you have learned about managing your repayment plan and how to avoid debt. In this way, your Chapter 13 experience might not harm you and could even provide some assistance in your job endeavors.