Filing for bankruptcy in Connecticut might provide relief from a lot of financial problems you’ve been experiencing. However, bankruptcy does have some drawbacks that are important to be aware of. Bankruptcy, in some cases, may impact your ability to be hired or promoted.
Employers can discriminate against you for a low credit score
The U.S. Equal Employment Opportunity Commission bars employers from discriminating against job candidates or employees because of a bankruptcy filing. However, employers are allowed to make employment decisions based on credit scores. This means that after a person files for bankruptcy, their low credit score could preclude them from being hired or promoted.
Employers must get your permission to run a credit check
Your current employer or prospective employer won’t know about your bankruptcy filing unless you tell them about it or they run a credit check on you. However, they will have to get your permission before running a credit check. Though you can say no to a credit check, an employer can also decide not to hire you based on your refusal.
Honesty is the best policy
Most employers won’t fire a current employee because of a bankruptcy filing, and there are only a few jobs where a high credit score is a requirement. In most cases, it is better, to be honest with an employer about your past bankruptcy than to let the results of a routine credit check surprise them.
If you explain what led up to your bankruptcy and how your finances have improved, your employer may understand. Things like divorce, sudden illness or a failed business venture are life circumstances that a lot of people can relate to. However, it’s important not to dwell on your history of bankruptcy and change the conversation to what you have to offer as an employee today.