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.