An approved bankruptcy helps individuals and businesses get out from under a mountain of debt to build a stronger financial future. However, sometimes, those plans for staying out of debt after bankruptcy can be disrupted by life events. For instance, according to data collected by The Kaiser Family Foundation, 41% of Americans carry some medical debt.

Incurring more debt might have you wondering if you can file for bankruptcy more than once. Whether you can file for a second bankruptcy depends on the type of discharge you have already received from the United States Bankruptcy Court. These laws limit how fast you can file, especially if you’ve done so before.

Debt is something that a majority of Americans are dealing with. According to the credit reporting bureau Experian, when you add up such debt as mortgages, auto loans, student loans, credit cards, and personal loans, the average American has $104,215 in debt. Most folks can repay those debts over time, provided they can maintain a good-paying job. However, for those who can’t repay creditors, filing for bankruptcy could be a way to rebuild their finances and get them back on the path of saving for the future.

The United States Bankruptcy Code has established six types of bankruptcies, referred to as chapters. Out of those different chapters, municipalities file for Chapter 9, farmers and fishermen file for Chapter 12, companies involved with foreign entities file for Chapter 15, and businesses can file for Chapter 11. Individuals have the option to declare either Chapter 7 or Chapter 13. Explore more information about the different chapters of bankruptcy.

It’s never easy to realize that you have more debt than you can pay back. But for some people, what’s even more upsetting is wondering, “Will filing for bankruptcy affect my job?”

Key Points

• In most cases, bankruptcy will have little to no impact on your job.
• Your employer may become aware of your bankruptcy under certain circumstances.
• Filing for bankruptcy can potentially impact your employment if you have a security clearance.

What Are the Chances That Filing for Bankruptcy Will Impact My Job?

For most people, filing for bankruptcy will have virtually no impact on their current job. However, certain individuals working under specific circumstances might see a minor impact on their current employment.

To be able to make the most informed decision possible, you need to have a firm understanding of all potential impacts that filing for bankruptcy may have on your life—both positive and negative. So while most people find that pursuing bankruptcy is a smart option for financial security, others may need to weigh possible job-related concerns.

It doesn’t matter whether your debt slowly crept up over time or if you were hit with several large bills in a short period of time—if you’re unable to repay your debts, you need help. Depending on your situation, filing for personal bankruptcy can be the step that opens up a path to financial freedom and stability in the future.

The beginning of this process can sometimes raise more questions than it initially answers, though. So if you’re asking, “Do you have to go to court to file for bankruptcy?” read on to learn more.

When debt becomes overwhelming, there is sometimes no way out on your own. Bankruptcy throws a legal lifesaver to those drowning under unpayable bills and expenses. A clean slate and a fresh start is often the best way for a person to reorganize financially and reestablish a sense of economic security in their life.

But what do bankruptcies cover? There are actually multiple different types of bankruptcy that cover different things. There are two common types of bankruptcy that most people facing debt due to medical bills, job loss, divorce, and other financially-binding situations file. Those are known as Chapter 7 bankruptcy and Chapter 13 bankruptcy.

The cost of higher education has been rapidly outpacing earning potential for at least 30 years. Since the 1991-92 school year, tuition at a four-year public college has ballooned from an average of $4,160 per year to $10,740—a price point that is out of reach for the average student and their family.

This rapid acceleration in college tuition has led to a growing financial crisis. Parents are increasingly taking on this debt for their children, too, with the average parent student loan balance averaging $35,000 in the 2018-19 school year. Altogether, approximately 44 million people in America are carrying a combined $1.7 trillion in student loan debt.

It can be terrifying to realize that you have more debt than you can handle, but even more terrifying for some people is the uncertainty of bankruptcy. Will they ever recover financially? Will their credit scores be forever impacted? Will all their debt be handled?

This process shouldn’t be a mystery. At Belsky & Horowitz, LLC, we want you to be fully informed of all your options and what they entail. With that in mind, let’s look at what happens after you file for bankruptcy in Maryland.

Filing for bankruptcy is stressful. You’re left feeling like you don’t have any other options, and you’re making a decision that will affect the rest of your life even though it will provide present relief. This is a serious choice that takes a lot of consideration. One of the steps of consideration would be talking with a bankruptcy lawyer.

In this meeting, you need to take advantage of having their counsel so you know what you’re getting into and can be assured that you’re making the right choice. You need to fully understand the process and what you’re getting into because bankruptcy is not a decision to take lightly—you need to be sure.

Let’s take a look at some of the questions you should ask to get a full picture of bankruptcy and your potential claim.

Filing for bankruptcy once is enough of a hardship for you and your family. No matter how hard you tried, though, you weren’t able to get back onto your feet and keep your finances in check. When that happens, you might think that you need to file for bankruptcy again.

You might be able to reevaluate and determine that you’re okay and don’t need to file again. But if you don’t have any other options to help you out financially, you could need to file for bankruptcy a second time. There are limits to filing that you’ll need to know before you try to file again, which is why we’re here to help.

The COVID-19 pandemic has been hard on many of us. Due to shutdowns, many people were out of work and even lost their jobs with no way to find a new one or know if they will get their job back when everything opens back up. This uncertainty about where you’ll get the money to pay your bills is stressful and can lead to you exploring your options. While the stimulus checks provided some relief, for most people, they didn’t provide enough.

Because of that, one of the options you might be considering to get back on your feet is filing for bankruptcy. Even though this leaves a mark on your financial record, you could think it’s the only option you have to get your finances back in order after losing your income.

Let’s take a look at filing for bankruptcy, and how it might be a viable option after losing your income because of the COVID-19 pandemic.