BankruptcyDoes anyone have advice on how to handle a bankruptcy? I hear some employers look for this and avoid hiring people with BK records. Mine was due to medical bills. I' d hate to bring up a health issue in an interview considering they may think I' ll be likely to have an impact on health coverage premiums, but then again if they won' t hire someone who filed a BK what should I do? Please help This will only come up if the potential employer pulls a credit report on you; not all employers do this. If you are being considered for a job, and are asked your permission to pull a CR, then is the time to tell them about it. You can explain that you had a number of unexpected, large bills; got behind to the point you couldn't make your payments, and were advised that BK was the best way to start over again fresh (I assume your BK attorney would have told you this, right?). But those issues are now behind you, and you are rebuilding your credit, etc., etc., etc. Look, if employers didn't hire people who'd had a banckruptcy, there would likely not be an unemployment problem in this country! And, not sure if you know this, but the vast majority of people who file do so because of overwhelming medical bills. You are by no means alone in this! Unless you are applying for positions in which you have a fiduciary responsibility, this issue may not be problematic. I think it depends on the employer, And despite the fact that apparently more & more employers are pulling CR's, neither my husband nor myself have had ours pulled. Do NOT bring this up in the first or even the second interview. IT MAY NOT BE AN ISSUE AT ALL, so why worry about it just yet? I know it is troubling to think that an employer might find this out, but there are MANY legitimate reasons - especially medical bills - for the decision to declare bankruptcy. The only time you should mention it is WHEN THE OFFER is on the table and then, ONLY if they say they' re going to run a credit check. You can ask by saying, "I' d be happy to accept the offer. Are there any further STEPS TO BE TAKEN BEFORE MY START DATE?" They' ll tell you if drug testing, credit checks or background checks are necessary and, most likely, they are not. IF, on the other hand, they SAY they' re going to run a credit check, I would explain (while continuing to say you' re REALLY interested in the position) just what you posted on this board. "I had unexpected and overwhelming medical costs." (Do not specify exactly what illness or accident happened - keep it general). "I tried every way possible to meet the demands of the bills, but was finally advised to declare bankruptcy, because they were simply unaffordable. If you look at my credit since then, you' ll see that I' ve been very responsible." You are self-conscious about this matter but I still bet it won' t come up. If it does, consider yourself among the ranks of the "average" millionaire who, in one study, have been known to accumulate three - YES THREE - bankruptcies before striking it rich. Bankruptcy is unpleasant to say the least, but it won' t keep you from moving on in your life and in your career. Just think - if you' re in a crowded elevator, there is probably at least one other person who has had the experience too, and you' d NEVER know it by looking at them. Forgive yourself for this unavoidable episode it your life. No one else is likely to know unless you tell them! Best of luck in your career and financial affairs from now on! While I agree with most of it, the time to bring it up is when they say they will run a credit check, regardless of whether or not an offer is on the table. You MUST confront the issue before they read it on a credit report and put the most positive explanation on it. Otherwise, they will read it and may not look to you for an explanation and move on to the next candidate. When I go on interviews, I never mention having to file bankruptcy unless they tell me that they will be performing a background check (involving credit check). I explain that my spouse is totally disabled and has some medical issues that make health insurance mandatory for us. I mention I was laid off from my job in mid-2002 and between searching for jobs and completing my bachelor’s degree, money was tight especially with $1,100+ COBRA premiums. We attempted to work with our creditors, requesting that they reduce payments & interest. Most of them were more than willing to assist, but two of them refused. After sending two reduced payments in attempt to show we were trying, they sent a letter stating our account had been turned over to an attorney for collections. Couple days later, letter from attorney came demanding payment within 30 days or litigation would begin. We were left with no alternative solution. We filed bankruptcy in late 2002, early 2003. We have been doing great at rebuilding our credit until I was terminated in Feb 2006 and started falling behind. COBRA payments are $1,300+ and oldest daughter just started college. The past 6 months will show late payments. I figure if they want a quality employee that will work hard, be dedicated and dependable, then they can overlook these issues.Otherwise, I really don’t think that employer is worthy of me. If they don' t show concern for my personal issues before I am hired, then they sure as heck won' t show it after I am hired! Actually I' m in debt settlement now (that spot before you declare bankruptcy) and I have had the same kind of issues with looking for a new job. I think it should not be brought up unless they are going to read it on a credit report first. Mine is credit card debt and I did everything short of going this road. I would bring it up if the prospective employer was going to do a credit check but up until this point no one has. I' m still waiting for offers to be made by my creditors. I would just indicate that those cards are closed and that I' m making attempts to rectify the balances. We had credit card debt and was doing the other first with the help of Consumer Credit Counseling Services. Their agent tried and tried to get AT&T to reduce their monthly payment and they absolutely refused. The other one was a financial lending institution and they took the late payments to the end of the loan without charging penalties, but would not reduce payment. I agree though, if they don' t ask, don' t volunteer it. Usually, you will be asked to sign an agreement stating that you give permission to do a credit check. If you are asked to give your permission on this, then you should speak up. Don't let the employer find out about on their own because it could lead them to believe you are dishonest or, at the very worst, trying to hide something. And this could lead them to rescind their offer (if they made one) or not extend an offer. If they are not going to check credit history, then I wouldn't think you would need to worry about it. Bankruptcy does not show on standard criminal checks. Or any criminal check, actually. And those are the checks that employers care most about. I have been there, done it! My Chapter 7 bankruptcy was discharged in February, 2002. However, since Bankruptcies stay on your credit report for up to 7 years, it can sometimes be an issue if you are seeking a job where you are responsible for handling money or securities. I have had two professional job offers and accepted them both with different companies since my bankruptcy. The following is an important caveat one needs to be aware of when a bankruptcy is on the credit report. You must take proactive steps to avoid getting yourself in more debt and avoid any late payments. This way, it is much easier to buffer the bankruptcy objection if that issue comes up in an interview or during a background check. I.e., Statements can be made along the line of, "Since the bankruptcy, my credit score/rating has continued to rise and I do not have any issues with managing my finances." Some recruiters I have spoken with agree that no late payments or other judgements will offset a bankruptcy on a credit report. However, even if you do not have a bankruptcy but show a history of late payments and bounced checks, this in the eyes of a potential employer looks worse than one derogatory mark on the credit report. Another way of looking at this is if an employer was looking at your college transcript. Say for instance you have all A's and B's on your 4-year transcript except for one F that happened in your freshman year. Sure, it sticks out, but does not show a pattern. On the other hand if you have A's and B's and every quarter some D's and C's show up, this shows an inconsistent pattern of performance. The person interviewing could explain only one F with a 3.75 GPA easier than a consistant pattern of below average GPA. Hope this helps a bit for anyone out there in the Monster.com world reading this string. Best of Luck to all job seekers. I agree with the post. I have one of the worst credit histories you could ask for. Yet I found it no problem when it came to finding my past two jobs after being fired. Be open about it and tell the interviewer what occurred and how you plan to repair your credit history. My credit problems was not due to overspending on useless stuff. Mine came from being a caregiver, medical bills (no health insurance) and working at low paying jobs that put me into a BIG bind. I do a lot of hiring too and I know how financial problems are overwhelming a lot of potential employees. What I look for is stability in the job force. Your maturity during the interview also helps. I am highly embarrassed because when I got this job, I had to ask my superiors for advancements to pay for business hotel fees before they issued me a corporate credit card! My credit card won' t even pay for one day in a hotel but slowly I am getting my credit history in order. | |
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