Bankruptcy is a serious matter with potential repercussions for your credit history, job, and career prospects. Employment regulations and certain professions may restrict opportunities for bankrupt individuals. Before declaring bankruptcy, it’s crucial to understand the impact it can have on your work and overall life. Explore your bankruptcy options and gain insights into your future prospects.
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
Navigating through and recovering from bankruptcy can be challenging. It’s essential to live within your means throughout this process, seeking guidance from your licensed trustee for specific information who will be able to give you more information. Prior to initiating the application, ensure you have enough funds to sustain yourself until your assets are divided and accounts unfrozen. If you’re a laborer or tradesperson, you can retain your tools and work equipment. Additionally, certain household furnishings, clothes, food, and fuel, as well as donated or inherited property, can be retained.
Avoid living extravagantly during the bankruptcy period, as it typically spans a year, with monthly payments covering incurred fees. Strive to maintain a lifestyle that aligns with your financial capabilities throughout this period.
Know What Professions You Will Be Barred From
Regrettably, bankruptcy can restrict your employment options in certain professions, such as estate agents and lawyers. Unless you operate your own business independently, these careers will remain inaccessible. To make informed decisions, conduct thorough research on professions that may have entry restrictions post-bankruptcy. Seeking assistance from a career coach can be valuable, as it allows you to utilize your time more effectively by focusing on job opportunities that align with your eligibility.
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 in your contract 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.
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