No federal, state, or local government agency may take your bankruptcy into consideration when deciding whether to hire you. You cannot be fired or discriminated against for the filing of your bankruptcy. In reality most employers rarely find out about a Utah bankruptcy filing. However, if a creditor has sued you, obtained a judgment, and started garnishing your wages, your employer will get the news through the wage garnishment. Filing for bankruptcy to stop the wage garnishment will notify your employer of the bankruptcy.
It is becoming common practice for employers to pull your credit report as part of the application process. While the employer does need permission to run a credit check, the employer can also refuse to hire you if you do not consent. If you’re asked to give this authorization, you should consider being honest and up front about your past financial problems and speak candidly about your bankruptcy.
As in most situations there is always an exception to the rule. If your job requires a security clearance and/or you are a member of the armed forces or an employee of the CIA, FBI, another government agency, or a private company that contracts with the government, you may be at risk for losing your security clearance if you file for bankruptcy. Prior to filing your bankruptcy, you should talk to your commanding officer or human resources division to get clarification on whether the filing of your bankruptcy will impact your job.
Please call me at (801) 432-8682 to discuss your options and whether a Chapter 7 Bankruptcy will impact your employment.
