For Tennessee residents who file for bankruptcy, new research suggests that they may not have to worry as much that their bankruptcy will cost them their job or keep them from getting one in the future. This goes against many long-held beliefs that bankruptcy is a black mark on one’s record that affects future employment prospects.
The study looked at data over a three-year period. It compared people who had a bankruptcy on their record with those who had evidence of bankruptcy removed from their credit history. The research found that there was a negligible difference when it came to whether the people were able to find a job after their filing. The research also found that people with a bankruptcy did not lose their existing job in statistically significant numbers.
However, for people who declare bankruptcy and have employment difficulty, they will may believe that their financial situation is responsible for it. There is a belief that bankruptcy is a sign of unreliability, notwithstanding the fact that many people can suffer dramatic economic consequences in turbulent economic times such as these. In the wake of the COVID-19 crisis and the possible unemployment that will result, it is likely that there will be a wave of bankruptcies, so these findings are certainly relevant to the current situation.
A bankruptcy attorney may be assistance to those who are in a precarious financial situation and are worried about how a bankruptcy filing may affect their future. The attorney may give their clients the facts about what a bankruptcy filing means and explain whether there could be any long-term impacts. People generally do not know much about the bankruptcy process, so consulting with a bankruptcy attorney might empower them with the information necessary to make this critical financial decision.