Finding a job in the current economy can be difficult for even the most qualified applicants. The process become even more complicated, however, for anyone applying for a job in the financial sector. According to attorney Paul Johnson of the Law Offices of Paul Johnson, many financial corporations are requiring that job applicants submit information about their personal finances before extending any new job offers.
For people with a good credit history and little to no debt, this requirement may not seem like a problem. For people who have filed for bankruptcy in the past, however, this requirement may reduce their chances of landing the types of jobs that they want.
As an attorney who helps clients file for Chapter 13 and 7 bankruptcy in NYC, Johnson says that most of his clients come to him as a last resort. Only after they have exhausted all of their other financial resources and options do these people start looking into whether it would be financially prudent to file for bankruptcy. What many don’t know, however, is that filing for bankruptcy may make finding a job in the financial sector more difficult in the future.
Increasingly, Johnson says his unemployed clients are beginning to ask more about how filing for bankruptcy will impact their chances of being hired by banks and insurance companies. Many employers now look at credit reports before making hiring decisions, and having a below average credit score could indeed lessen a person’s chances of getting hired. With that being said, Johnson also explains that a low credit score is not supposed to hinder a person’s chances, and that discriminating against someone because of a past bankruptcy filing is technically not allowed. Johnson says that as an attorney in NYC, he advises his clients thinking of applying for Chapter 13 or 7 bankruptcy to keep in mind that their bankruptcy filing will be taken into consideration if they are applying for a job that requires the posting of a bond.
In the financial sector specifically, Johnson says it is common that employers will require any potential employees who would be handling clients’ money to get bonded. The banking, accounting, and insurance industries are notorious for this practice. The theory behind asking a new employee to get bonded prior to being hired is that if a person can’t handle his own money, and therefore cannot post the bond, then he or she should not be handling anyone else’s money either. Oftentimes, employers will run a credit check at the same time they run a criminal background check on job applicants who they are seriously considering for the position.
In reality, however, this practice does put certain people at a disadvantage when it comes to securing a job. Johnson says that as an attorney, he encourages anyone filing for Chapter 7 or 13 bankruptcy in NYC to remember that filing for bankruptcy is not a crime and neither is having bad credit. Technically, individuals are not supposed to be discriminated against because of filing for bankruptcy, and if someone believes he is being discriminated against in this way then he or she should seek an attorney for guidance and support.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Neither publication of this article nor your receipt of this article create an attorney-client relationship.