There are a lot of myths about bankruptcy; but one is particularly damaging for debtors who are unemployed and NEED to file bankruptcy now to save their assets while they are looking for a job. There is a nasty rumor going around that bankruptcy filers are restricted from certain professions and that they can’t join the military or get security clearance. This is a blatant falsehood. The truth is that certain jobs look at your finances as part of an overall assessment of your application. For example, the military may look to see if you have large amounts of debt which could make you vulnerable to bribes. Someone who has filed for bankruptcy and discharged their debts is less likely to be bribed than someone who has avoided bankruptcy and is facing a mountain of debt. Now, that’s the truth.
As far as debtors who are in the financial industry, once again, employers are looking at how you handle your finances. They want to know if you are struggling with debt and are vulnerable to being tempted to steal from them or from clients. This is just common sense. They are not going to automatically assume that because you filed bankruptcy that you are financially irresponsible. Because if filing for bankruptcy makes you an “untouchable” then large banks still doing business now who have filed bankruptcy would not be able to survive. If you are applying for a job which takes into consideration your financial history and you have a bankruptcy on your record, explaining the origins of that bankruptcy will go a long way in easing the employer’s fears.