Jobs and Being in Debt

I get asked a lot about what happens to a job or career one may have and if they are in debt or insolvent.

For the majority of us, just because we have debts, may be facing bankruptcy, or are enrolled in a debt management plan or IVA, has no affect on our jobs.  And our employers are not out of a matter of course notified if we are bankrupt or in debt. Again, your employer does not need to be notified just because you are in debt or have gone bankrupt. The real issue here is that while your job may not be affected, and your employer not notified, being in debt or stressed by the fact you are struggling financially, can have an effect from the stress.  Who knows how many days of work have been lost, or poor productivity due to someone being upset, stressed or just low about their personal financial situation.

There’s a study and some statistics I’d like to see done.

Now, I previously wrote that being in debt or bankrupt for the majority of us does not have an impact on our jobs and careers.  There are a few jobs that it can affect.If you are in banking or the financial sector, in mortgage lending, and even some estate agent positions, can be impacted by going bankrupt.  Not necessarily though by being in a debt management plan or an IVA.

For some jobs you know if being bankrupt is going to be an issue.  But the best way to confirm this is to review any employment contract you may have.  If you don’t have one, then to my mind the situation isn’t addressed, which can be a good thing.  But you could also have a private conversation with your personnel department, again if you have one. But in doing this you would be disclosing your situation, which you may wish to not do.

When applying for a new job many people ask if bankruptcy or debt issues need to be disclosed?  The answer is only if asked.  If a prospective employer uses a credit check or asks questions of a personal financial nature, you would know during the hiring process.

So as I advise to people, who are concerned about their debt situation and their jobs, get the facts first, as it may not even be an issue.