Felony Convictions and Impact on Finances
Those who have been convicted of a felony charge are typically sentenced to jail time. Unfortunately, after serving a jail sentence for a felony, most job applications ask the question "have you ever been convicted of a felony". In fact, many loan applications also ask the same question. Sadly, this means that a convicted felon will have fewer job opportunities and their financial future may be at serious risk, including some of the following issues:
Loans - When applying for a mortgage, those who have had a felony conviction may be turned down even if they have met other loan criteria;
Insurance - Some life insurance companies will not grant policies to convicted felons. Depending on what type of felony was charged the felon my also face challenges obtaining automobile insurance;
Certain benefits - There are certain benefits that a convicted felon may not take advantage of for limited or specific periods of time depending on the crime. These include certain pension, Social Security and other federally sponsored benefits;
Housing - Many felons are not able to obtain FNMA, FHA or VA loans even if they meet the credit criteria. Most felons will find are they are also not eligible for public housing.
There are other financial concerns that can have a long term impact on a felon's ability to succeed financially. It is important to note that not all felonies are treated equally. This means that not all felonies will have the same impact on a financial future.