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Bankruptcy is no laughing matter, and unfortunately going bankrupt can cause significant damage to your credit history, to your job, and to future career prospects. Many business owners have to follow regulations when it comes to employing bankrupt people, and many professions actually bar people who are bankrupt from working for them. When you are considering declaring bankruptcy, you should first consider the impact it may have on your work and the rest of your life. It is important that you know your options when it comes to declaring bankruptcy, and it is important you know what the future may hold for you.
This guide will tell you everything you need to know about finding a new job after you have declared bankruptcy, and all of the pitfalls that may stand in your way.
Live According to Your Means
During and after the bankruptcy process, keeping your head above water can be difficult. It is important that during this process you live according to your means, and your licensed trustee will be able to give you more information on that. You should ensure that before the initial application phase that you withdraw enough money to see you through until after your assets have been divided and your accounts unfrozen. If you work as a labourer or are a tradesman, you will not have to forfeit your tools, nor your work equipment. You will also be entitled to retain up to $6,000 of your household furnishings, clothes, food, and fuel, and property that has been donated to you and inherited.
You should ensure you do not live extravagantly during this process, as the bankruptcy period is an entire year and you will likely be making monthly payments from fees incurred. Live according to your means as best you can.
Know What Professions You Will Be Barred From
Unfortunately, after bankruptcy you find many professions will bar you from working with them. Estate agents and lawyers are an example of this, and unfortunately, after bankruptcy you will never be able to work in either of those careers unless of course you own your own company and work privately. You should undertake research to ensure you know which careers will bar you from entry, and a career coach should be able to help you do that, as time spent applying for jobs that will not permit you entry could be spent more productively.Bankruptcy is no laughing matter, and unfortunately going bankrupt can cause significant damage to your credit history, to your job, and to future career prospects. Many business owners have to follow regulations when it comes to employing bankrupt people, and many professions actually bar people who are bankrupt from working for them.Click To Tweet
Do You Have to Declare Bankruptcy to Employers?
Thankfully, for many jobs, you do not have to declare your bankruptcy to your would-be employer. However, for the jobs previously mentioned in the last paragraph, you do. Needlessly declaring it may hinder your chances of getting a potential job, so you should make sure that if it does not cite on your contact that you are required to declare your bankruptcy, then do not do it. However, if an employer does state you must declare it, then you absolutely have to otherwise you may find yourself in trouble.
Consider Working for Yourself
One of the best ways to ensure employment following a bankruptcy is to go into business for yourself. By trading for yourself, you will ensure that you are not held back and subject to membership regulation. As an independent tradesman you will not be required to declare your bankruptcy, nor will it hinder any potential business. Many people choose to start trading for themselves as a solution to their bankruptcy, and for many, it proves to be a very lucrative venture.
There are many ways you can work for yourself. One of the best, and easiest, is to become a tradesman and start charging for electrical and plumbing work. Tradesmen are not required to have qualifications to work, although it is recommended so you can fully understand the work you will be required to do. If you do not, you risk damaging people’s homes and leaving jobs incomplete.
You could also consider buying and selling goods, as that often proves lucrative, and you will be able to start a trading company. Trading for yourself is a great way to break the shackles and constraints of post-bankruptcy life, and it should be considered.
Go Back to School
If your job prospects are minimal, you may consider returning to school and picking up another qualification. While bankruptcy may deter employers from hiring you, adding qualifications to your resume can serve as a remedy and prove you are more than qualified for the job positions you are applying for, and that your bankruptcy does not define you.
Now you know everything you need to know about applying for jobs when you have been declared bankrupt or your business has gone into insolvency.