There’s a lot of misinformation out there about bankruptcy. Unfortunately, it too often keeps people from using it to deal with overwhelming debt.
People often fear, for example, that having a bankruptcy on their credit report will hurt their chances of getting a job in the future because potential employers will see it. Of course, anyone who is seriously considering bankruptcy likely already has a credit report that shows extensive debt and a low credit rating.
Oregon law and credit history access by employers
What’s important to know is that Oregon law generally prohibits the use of a person’s credit history in making employment decisions. It states that except in specified circumstances, “it is an unlawful employment practice for an employer to obtain or use for employment purposes information contained in the credit history of an applicant for employment or an employee, or to refuse to hire, discharge, demote, suspend, retaliate or otherwise discriminate against an applicant or an employee with regard to promotion, compensation or the terms, conditions or privileges of employment based on information in the credit history of the applicant or employee.”
Some exceptions under the law include:
- Law enforcement agencies
- Federally insured financial institutions
- Employers required by law to check credit histories
There may be specific exceptions for certain jobs within other organizations if “the information is substantially job-related and the employer’s reasons for the use of such information are disclosed to the employee or prospective employee in writing.” This writing could be in fine print, so it’s important to look for it when applying for a job – whether with a new employer or a current one.
Being prepared to address a bankruptcy can help
Although the law offers these protections for people who are seeking jobs where credit history is not considered relevant, it’s still wise to be prepared to address it if it comes up in a job interview. A bankruptcy, as opposed to continually mounting debt, can show that you recognized the problem (which may have stemmed from overwhelming medical debt, job loss or something that could happen to anyone). Further, you took action to address it, and you learned important lessons.
If you’re considering bankruptcy, it’s smart to learn more about it. If that’s the solution that’s best for you, having legal guidance through the process can help you avoid unnecessary mistakes and get back on a strong financial path.
