Can I Be Bonded if I File Bankruptcy?
One question some potential personal bankruptcy filers have is whether they will qualify for bonding if they have a bankruptcy filing in their past. The answer depends on a number of factors. Here's a look at some of those.
What Is Bonding?
First, a brief definition of bonding: Some employers require their potential employees be "bonded" by an insurance agency to be eligible for work. Bonding in this case is a type of insurance against theft or other loss that the employee might cause. The bonding company essentially agrees to cover any losses that the employer incurs because of a specific employee.
Bankruptcy and Bonding
Here's a look at some of the factors that might determine whether you can be bonded after a bankruptcy filing.
- The bonding company: Each insurance and bonding company is free to establish its own qualifications for potential customers, and some companies specialize in certain types of bonds. In order to determine whether someone qualifies for bonding, the person has to research various insurers and determine whether he or she meets their guidelines.
- The job you want: Another factor that might affect whether a bankruptcy will affect someone’s ability to be bonded is the specific kind of work that person seeks. Working in the financial department of a company, for example, may require different bonding than working the warehouse.
- Your criminal history: One major factor for many bond providers is whether a person has a clean criminal record, or whether a certain amount of time has elapsed since any criminal convictions occurred.
- Your credit history: Some bond providers may consider credit history as part of the bonding process. If you're worried that your bankruptcy filing might prevent you from getting bonded, consider this: most people who need bankruptcy protection do not have very strong credit before they file their cases, and bankruptcy essentially wipes the slate clean.
Learn More about Bonding and Bankruptcy from a Lawyer
Each individual case of bonding and bankruptcy is different, which is why it’s important to make sure you understand how filing for bankruptcy might affect your personal ability to get bonded before you make the decision whether or not to file.
If you'd like to speak with an attorney to discuss the potential effects a bankruptcy case might have on your employment and bonding future, you can take advantage of this opportunity to arrange a free legal consultation with an attorney in your area.