Will Filing For Bankruptcy Prevent Employment In The Financial Sector?

Question: I lost my job in December 2008 as an attorney at a large New York law firm when the firm dissolved. I was not able to find a job until September 2009, but it pays a lot less than what I used to earn making it very difficult to pay my debts, which I easily paid before I lost my job. My car has been since repossessed and I have not been able to pay a single credit card bill since I lost my job. Although it pains me, I am considering bankruptcy because I am unable to pay my credit card debts, deficiency on the car and my student loans (around $250,000 for the student loans alone). I understand that I am still responsible for the student loans, but would love to have a clean slate with the other debts. I own no assets except for some clothes, furniture, books and a 2004 mac computer. Although I have a job, it is on a contract basis and I’m looking for a permanent position. Given that I am an attorney and that I am looking for a job in the finance sector, does it make sense for me to file for bankruptcy? In other words, will filing for bankruptcy prevent me from gaining the employment that I want? Thank you for your time.

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Filing for bankruptcy may actually improve your ability to get a job in the financial sector, depending on the position. Employers may look at an individual's debt as a potential security risk in hiring. Of course, there's no guarantee either way; the real question is whether you can afford to repay the debts at this time and, if not, what your alternative may be.

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