In our current economy, there is a lot of talk about how your personal finances can influence your personal and professional life. When you file for bankruptcy, it’s well known that your credit report will be severely affected and negative information will last for years. While you may hit a lending roadblock immediately after your bankruptcy, your life won’t wait.

One of the most fundamental needs that a person can have is housing and after bankruptcy or foreclosure it is housing. Many companies or landlords that you may want to rent from will run background checks that will include a criminal and financial check. If you filed for bankruptcy, especially if it was relatively recent in the last 2-3 years, you may have a hard time getting someone to rent to you. One way to avoid this is to rent with individual owners who are more likely to be free to tell their individual story once they meet with you personally. Apartments managed by a company are more likely to impose their established standards and not rent to you or be unwilling to consider your personal circumstances. Finally, when looking for your first rental after bankruptcy, be tax wise and look for a very affordable unit to start with. Once you build a strong post-bankruptcy rental history, it will likely open up more options with future landlords over time.

Another area that can be affected by filing for bankruptcy is services that many take for granted, including insurance, cell phones, and household data information, including cable, phone, and internet. Many of these service providers require credit checks before they begin offering services, and if your history is not satisfactory by their standards, you may seek other avenues to obtain these services. If you are in this position, you can expect two different possibilities, paying larger deposits if you are allowed to purchase these services, or having to pay upfront for the services. Many companies will require you to pay for services before you receive them through these larger deposits or limits on your service, like prepaid cell phone plans.

Employment is a crucial aspect of anyone’s livelihood and is especially important to discuss in terms of post-bankruptcy job hunting. Potential employers will often run credit checks, especially if the position involves handling money or other valuables. The best solution to this is to be aware of the possibility and be sure when applying for jobs.

One last important area that is expected to be drastically affected after bankruptcy is clearly the ability to receive credit, whether as loans, mortgages, or credit cards. Anyone who extends you credit will likely impose very high interest rates and strict terms. Be cautious when trying to borrow by borrowing conservatively, and be sure to take interest rates into account when considering repayment. With credit cards, a new product has recently entered the market in the form of prepaid credit cards. Although these prepaid credit cards have “Mastercard” or “Visa” on them, they are not credit cards and are not subject to credit checks or reporting to a credit bureau. Also, since they are nothing more than a debit card, if they are lost or stolen, you are subject to actual cash losses and are more difficult to dispute. Prepaid card issuers also often impose stricter rules regarding lost or stolen cards, including a requirement to report it within 48 hours or you will begin to bear the burden of monetary loss.

In Massachusetts, if you face discrimination because of an existing relationship (service provider, employer, etc.) after filing bankruptcy, you may be able to be protected by MGL Ch. 151B § 4 §§ 4A which prohibits such retaliation. Bankruptcy is a constitutionally protected act and it is illegal to retaliate against such a protected act. In any aspect of your life after bankruptcy, the best tool you can have is the knowledge so that you are not caught off guard and always have multiple options available so that in the end all your needs can be met. you and your family.