With the recent recession and foreclosure crisis, many people have filed or are considering filing a Bankruptcy of some kind. What impact will filing a Chapter 7 or Chapter 13 Bankruptcy have on your future? There are a lot of myths out there, but there is some information you should know about how bankruptcy can influence your future.

When it comes to your employment, most jobs do no review a credit report before making a hiring decision. However, you can take steps to minimize damage that employers might find if they do take this extra step. In cases where an employer uses your credit report to verify your identity and background, they likely will not delve any deeper than that. However, if you are applying for a job that gives you access to company finances and funds, the employer will almost certainly check your credit background. It is wise to have that conversation with your future employer early in the interview process. That way, if they hunt, they will not be surprised and you have already provided an explanation.

Another common question is what the impact a Bankruptcy filing might have on your car insurance rates. The simple answer is that it depends. Some auto insurance companies do consider your credit history if you are looking for a quote.  Your rates are less likely to increase if you have been with the same carrier for some time. The theory behind any rate hike is that bankruptcy may indicate that you are a higher risk for taking care of your car, thus resulting in future claims.  However, it is likely that your credit was not in good shape prior to the Bankruptcy, so you might not see a tremendous change in your premiums. The good news is that after a few years, you should see your insurance quotes start to go down, provided you do not have any major accidents or other financial incidents in the meantime.

The bottom line is that you should speak with an attorney and consider carefully the effects of a bankruptcy on your future credit rating.