It may seem unfair that a bankruptcy could have an effect on your future employment – after all, you need to generate income in order to avoid another financial crisis – but bankruptcy’s effect on job prospects is a factor to consider when dealing with the aftermath.

Government employers – be they local, state, or federal – cannot consider your bankruptcy in the process of a hiring decision. While employers cannot technically pass you over for a job because your credit history includes a bankruptcy, it is possible for private employers to consider your credit when deciding whether to offer you a job, and they can turn you away for simply having poor credit. Particularly, applicants to jobs involving money – such as accounting, bookkeeping, cashiering, and payroll jobs – may find themselves subject to credit checks by potential employers looking to assess risks in potential new hires.

Applicants with significant debt seem more likely to commit theft, especially in positions that require direct handling of cash. While corporate employers require your consent prior to checking your credit, they can also turn you down for a job if you refuse consent. The unfortunate truth is that bankruptcy can have an effect on your job prospects, but this is not always the case. It is certainly possible to obtain employment following bankruptcy. Openness may be the way to go if you know that a potential employer plans to check your credit history. That way, you have the opportunity to explain the situation and the steps you have taken to repair it, showing that these troubles will remain in your past.