What to know about job prospects after bankruptcy in New Jersey

Knowing how bankruptcy impacts employment can offer reassurance and make for better-informed employees.

After filing for bankruptcy in New Jersey, you might be curious about how the process will impact your current employment as well as your future job prospects. Having a few facts can bring you peace of mind and know how best to proceed as you rebuild your life after bankruptcy and what you can expect next.

You cannot be fired from your current job

One of the first things of which you should be aware is the fact that you cannot be legally fired from your current job because of your bankruptcy. The bankruptcy code is what protects your job and prevents your employer from terminating you, denying you a raise or demoting you because you filed for bankruptcy. That being said, there is no guarantee your employer will not look for another reason to terminate you. It is up to you to prove the reason you were terminated is because of your bankruptcy.

You should be honest on job applications

If you are looking for new employment, you might be asked to agree to a credit and background check, which is when your bankruptcy is likely to be discovered. It is best that you not lie about your bankruptcy and be prepared to explain not only what lead you to file for bankruptcy, but what you are doing now to move on from it.

You might be turned down for a job with the private industry

If you hope to get a job in the private industry, you could have a hard time doing so with a bankruptcy on your file. This is because the job may involve handling money, and it is perfectly understandable why a business would not want a person who has filed for bankruptcy involved with any type of company finances.

You might have a hard time getting a license

In terms of how bankruptcy can impact your eligibility for a professional license as a doctor, lawyer, veterinarian, pharmacist or the like, things can be a little complicated. This is because you might have to meet certain moral standards before being approved for your license, which means you might not be looked upon with favor if you have filed for bankruptcy.

Security clearance

Just like filing for bankruptcy can help save your home, filing for bankruptcy can also help if you seek out positions with the CIA, FBI and the like. Because you are not saddled with debt, such organizations feel you are less likely to accept a bribe.

If you are worried about the intersection between employment and bankruptcy in New Jersey, talk to a lawyer. Know your options as well as your rights when it comes to your employment and income.