On April 1, 2010, the NUMMI (New United Motor Manufacturing Inc.) auto assembly plant in Fremont, CA shut it doors for good, leaving more than 4,700 employees jobless. It was the last auto plant in the entire state of California, producing more than 8 million Toyota vehicles during its 25 years of operation.
Some of the workers cried as they left for the day, while many worried about their futures. While most workers received an average severance package of around $21,000, instability in the auto manufacturing market has many worried that they'll have to declare bankruptcy in order to deal with mounting bills, the loss of health insurance and the lack of jobs within the state.
Will Filing for Bankruptcy Harm Chances for Future Employment?
Trying to get a job after filing for bankruptcy is often a concern for many people. However, bankruptcy doesn't have to hinder your chances at a job if you're upfront about your history. When you apply for any position, be honest about your bankruptcy. Explain the circumstances why you had to file and be sure to highlight your stellar credit behavior since you've filed.
Most employers check your credit history simply to make sure you're not a person who is gravely irresponsible with money or someone who would be prone to company theft or mismanagement. Although Section 525 of the U.S. Bankruptcy Code stipulates that employers cannot discriminate against you simply because you've filed for bankruptcy, it can happen if you're not clear with potential employers about your history.
At the end of the day, recent economic hard times have caused a lot of people to turn to bankruptcy, so it just doesn't mean as much to certain employers as it once did. As long as you're forthcoming and capable in your interview, bankruptcy shouldn't stop you from getting most jobs for which you're qualified.
