Insolvency may not keep people from getting jobs

When someone files for bankruptcy in South Carolina, there has always been the impression that it could be detrimental to their employment situation. However, some recent research takes the opposite viewpoint, finding that the presence of bankruptcy on one’s credit report does not have a statistically significant impact on whether they are able to find employment or keep their current job.

The prior thought was that bankruptcy was a sign of the inability to manage one’s finances and could be seen as a sign of unreliability. The thinking was that employers could trust someone less who has filed for bankruptcy. However, the Great Recession may have changed some of the previous thoughts about bankruptcy as millions of people were deeply impacted by events over which they had no control.

The researchers were actually surprised by their findings in light of the many years of studies that have found the exact opposite. Whether this is the start of a new way of looking at bankruptcy or is merely just an outlier remains to be seen. What is certain is that the recent COVID-19 crisis will cause a wave of financial difficulties which may include bankruptcy for many people under financial stress. The hope is that it will not keep them from finding a job in the years to come.

A bankruptcy attorney may be able to help those who are in financial distress contemplate their options for dealing with their issues. They might advise clients on the future impacts that bankruptcy could have on them, even after the process is successfully completed. The process of declaring bankruptcy is a difficult one and those who need the protection of the laws could benefit from the assistance of an attorney who can guide them through it every step of the way.