Why You Need Sound Advice Before Declaring Bankruptcy

Although most consumers with huge debts often rush to file for bankruptcy, it comes with some repercussions, making it necessary to weigh one’s options carefully before making the final decision for bankruptcy declaration. As a matter of fact, very few individuals know how much the law protects them where employment is concerned, and eventually fail to realize that the effects of bankruptcy on employment if they work for corporations or financial institutions may just be too drastic.

As it is, no employer is allowed to deny a job seeker position in an institution on grounds of bankruptcy. However, the same law has provisions for job denial in case someone has bad credit. In this case, the effects of bankruptcy on employment will be negated given that when one files for bankruptcy, they automatically have a poor credit rating.

effects of bankruptcy on employment

Most people file for bankruptcy to escape the wrath of creditors. However, they forget the effects of bankruptcy on employment more so when they have the hope to seek other positions in future. Under normal circumstances, people in debt often just consider the repercussions of their actions on credit, forgetting that at some point in time, there may be need to look for employment elsewhere if the current one ends.

Certain job positions are affected by bankruptcy as opposed to others. An individual working within the financial industry is likely to attract sideways glances after a declaration of bankruptcy unlike say a construction worker. This basically means that any individual intending to work in certain industries in future ought to explore various options available first before contemplating a bankruptcy declaration knowing well what bankruptcy and employment entails.

Professions Affected by Bankruptcy

Even though the law protects both employees and employers there are certain professions affected by bankruptcy. These are:

  • Financial workers like accountants, stock brokers, mortgage brokers and financial advisors.
  • People in the armed forces.
  • Police.
  • Medical workers like doctors, dentists and surgeons.
  • Law department workers like lawyers, court clerks, solicitors and legal executives.
  • Property agents e.g. letting and estate agents.
  • Local or national posts like MP and senator.

Although an individual working in these institutions may not be openly dismissed, there are instances when one may be slapped with a demotion. Holders of public offices may be compelled to resign because an individual incapable of handling personal finances cannot be trusted to oversee that of a bigger populace.

The impact of bankruptcy on employment may certainly be great, but there are trade unions that work for the benefit of employees. Before deciding on bankruptcy declaration, it is important to read the employment letter carefully to find out what the conditions of the job is. In case the terms used are difficult to comprehend, one can either Google from the internet or ask the union rep for clarification.

As much as bankruptcy stops creditors from pestering a borrower, it should be the last option for a consumer. There are numerous debt relief options available at the moment, and one can get sound advice from debt mediators on the best way to go when debts become unmanageable. Find out more at HTTPS://WWW.DEBTMEDIATORS.COM.AU/BANKRUPTCY-SOLUTIONS/BANKRUPTCY-AND-EMPLOYMENT/.

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