Will I Get Fired From My Bank Job if I File Bankruptcy? – Jean


Dear Steve,

I work for a bank and somebody told me that if an employee files bankruptcy they can no longer work for the bank?

Can you work for a bank and still maintain your safe certification and NMLS if he filed for bankruptcy?



Dear Jean,

I am not aware of any hard rule that would disqualify a bank employee simply because of a bankruptcy filing. In fact it could be argued, as the military does, that filing bankruptcy to resolve financial problems is a better solution than remaining financially exposed.

Some positions in the bank might have more consequences with filing bankruptcy. For example if you were an officer of the bank then state licensing might be more of a consideration. But filing bankruptcy alone does not have to be disqualifying. For example, the State of Arizona says, “Per Arizona Statutes, your credit report must indicate you have been financially responsible. AZDFI does not use minimum credit scores. If your credit report shows derogatory credit, including bankruptcy, foreclosure, judgments, or tax liens, you will need to provide an explanation and address how you have been financially responsible. Provide any documents you feel are needed to support your explanation. A recent bankruptcy does not necessarily indicate you have not been financially responsible. Your total credit history will be reviewed. Once these items have been reviewed, you may be asked to provide further information or documentation to support that you have been financially responsible.” – Source

Now it is possible that a specific bank may have a specific policy regarding bankruptcy. If you need the legal protection of bankruptcy then it is a legal process available to consumers.

Clearly the safest thing to do would be for you to have a confidential discussion with your HR department and coordinate your filing with them. Better to have them in the loop than surprised and feel as if you hid information from them.

Another excellent source of information would be the local bankruptcy attorney you are hiring. They may have dealt with the bank and/or a bank employee in the past and can provide you with advice.

Now every situation is different but my experience has been that people are not let go just because they file bankruptcy but for other job performance issues and they just happened to file bankruptcy.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

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