Individuals who have filed for bankruptcy may now have a tougher time obtaining a job as a result of a recent court ruling.
A three-judge panel of the fifth Circuit Court of Appeals concluded that private companies have the legal right to not hire a prospective worker because he or she has filed for bankruptcy, Reuters Legal reports. The court said the federal statute designed to prohibit workplace discrimination only applies to the public sector when it comes to hiring decisions.
"Overall, this is unfortunate for millions of bankrupt Americans who are very qualified people," said attorney Alex Wathen, according to the report. "People should be evaluated on their talents."
With the unemployment rate still hovering near 9 percent, the new ruling poses another obstacle for financially troubled individuals. However, some consumers may have some recourse by obtaining credit repair.
Individuals who have improved their credit standing and their financial management since filing for bankruptcy may be able to have certain negative marks removed from their credit report by contacting a credit repair company. A credit repair specialist may be able to work with the credit bureaus to strike such notations from a person's record if the credit companies fail to document that those items were reported in accordance with several consumer protection laws.