No Link Found Between Bankruptcy and Employment Prospects
March 18, 2020
When people file for bankruptcy, it may make it harder to get a loan. However, it may not necessarily mean that companies in Oregon or elsewhere in the United States won’t hire them This is according to a study conducted by researchers from Yale, Harvard, and the University of Chicago.
The researchers compared employment data between those who had seen their Chapter 13 cases drop off of their credit reports and Chapter 7 filers who were still under a bankruptcy flag. In most cases, Chapter 7 proceedings remain on a credit report for 10 years while a Chapter 13 case stays on a credit report for seven years. Data was gleaned from the Social Security Administration and the Equifax Consumer Credit Panel.
The data showed that a person’s job prospects weren’t any better or worse because of a bankruptcy on his or her credit report. Furthermore, the study found that bankruptcy statistics couldn’t predict how long a person would remain at his or her current job.
Those who are looking for work should feel better about their chances of landing a job even if their credit histories aren’t the greatest. Furthermore, employers may want to review their workplace cultures to ensure that it doesn’t discriminate against those who have filed for bankruptcy or who don’t have a good credit score. Filing for Chapter 13 bankruptcy may allow people to reorganize their current debts. It may also put an end to creditor phone calls or proposed lawsuits. An attorney may be able to help clients learn more about the potential benefits of the process.