Bankruptcy

Personal Bankruptcy: Another Reason

By Richard K. Gustafson

By Richard K Gustafson II

I recently received an email from a potential client. He was having trouble landing employment because each time he would go through an interview process, the prospective employer would run a credit report and refuse to hire him.

Some of you may think that this is a reason NOT to file for bankruptcy. However, consider the fact that this person was unable to get a job because he owed too many debts and he was delinquent. Employers didn’t want to hire him because they’re afraid they may have to process garnishments, that they will have to take calls from angry creditors asking for him, etc…

Bankruptcy, either Chapter 7 or Chapter 13, is a way to solve this problem. Employers won’t have to worry about getting nasty phone calls from creditors, they won’t have to worry about processing garnishment orders, and they know that the employee’s incentive to steal is gone, all because the bankruptcy has eliminated the person’s debt.

Also, personal bankruptcy allows the person to begin rebuilding credit. Remember, the first step to rebuilding credit is to get out of debt and bankruptcy is the step that can get you out of debt quicker and more cheaply than any other option.

Full post as published by Consumer Bankruptcy Blog from Legal Helpers on February 10, 2006 (boomark / email).