Planning to file, but really concerned about the future...

[rkg2004]

Hi, I'm new to all this and my husband and I are planning to file in a couple of months. The biggest concern I have about the whole process is how it will affect future employment opportunities for me.

I got really worried when I visited Dave Ramsey's site and he pointed out that bankruptcy stays with you FOREVER since most employers ask you directly on the application if you have ever filed. I came here and was somewhat relieved that most people take him with a grain of salt, but I have seen this on employment applications.

I was wondering if there was anyone here that is 10 years beyond their BK and have you experienced any problems with getting a job after that point?

Thanks.

[kartoons19]

In all of the jobs I have applied to throughout the years I never once had to answer a question about bankruptcy. From what I know, BK can affect your ability to get a job in the financial sector, if you will handle money or if you need a high security clearance. However, I have read on this forum that people were still able to get these types of jobs. Hope this helps.

[lynzy]

Thank you for asking this! I was just going to ask the same thing.
It's good to know that, after my husband graduates college, he'll still be able to get a good job.

[tyson24]

I filed in 98' and got an accounting job within the first 2 years. BK was a lot less appealing and done back then. You will be fine I think.

[kartoons19]

I was able to land a job and I haven't even been discharged yet, so it is more than possible to get a job after a bk.

[rkg2004]

Thanks for your responses kartoons19. Another question for everyone. How did the subject of bankruptcy come up? Did you volunteer the information, or did it come up in a background check?

[heidiheidi87]

You have to also remember that Dave Ramsey is highly against BK, even though he once filed. I've never seen an application, or been in an interview asking about filing. I've seen, and been asked, for criminal background checks. I have seen for medical offices, for example, where they ask about civil suits, but not BK. I wouldn't worry... a bank teller who is a client of mine (I'm a hair colorist) filed a few years ago, and she was able to keep her job, even though she informed them that she filed...though I think it is illegal to fire someone for it.

[kartoons19]

Thanks for your responses kartoons19. Another question for everyone. How did the subject of bankruptcy come up? Did you volunteer the information, or did it come up in a background check?

After I got a verbal offer, I called HR and told them that given the economy, I have run into credit problems for the first time in my life. She said they don't check credit and agreed these are tough times. I never mentioned the BK. I am getting a copy of my background check because I'm curious to see if that alone will refer to the bk. Hope this helps.

[rkg2004]

Yes, please let me know how it goes. I would also be curious to know what is on the background check. Good luck getting that job!

[phxtoatl]

Well, one thing is for certain. If someone is in a position to declare bankruptcy, then it is likely that what is on your credit report could prevent you from getting a job that requires a security clearance or a job in the financial sector. Even a public trust clearance takes your credit into account. From what I know, the common practice of trying to tread water while making late payments to creditors or not paying at all for awhile will definitely be noticed by a security background investigator during a background interview. During such an interview, a background investigator may even grow to have sympathy for someone on a personal level after hearing about hardships, however he or she obviously has a duty to collect and verify information on an official level. An adjudicator then comes into the mix and decides if you get the clearance depending partially on the state of your debts and financial affairs.

I have seen situations where federal employees actually declare bankruptcy to keep their jobs. That sounds wild, but it is your legal right to discharge your debts through bankruptcy and is viewed as a possible solution to debt by those in authority. Of course, there is no guaranteed outcome but it sure happened a lot recently where I worked.

I have read other posts on other forums where people ask about federal employment and bankruptcy. I am sure it depends on the situation, but one can easily assume that federal job applicants and current federal employees would not be employable based on review of their credit reports; bankruptcy may actually make you more employable. I am not speaking too much for jobs in the financial sector – that’s not my line of work. I imagine that they look harder at finances than anyone else judging from what I see as a consumer. So, bankruptcy is a decision for each person to make; in my case, I had to take into account the fact that I would difficulty passing a background due to my credit. Once I accepted that, I now have nowhere else to look but forward. I don’t know if employers, fed or not, consider the amount of time and state of your affairs since bankruptcy, but I have seen fed employees declare just before background investigations were scheduled. The word was as long as debts were discharged before the adjudication of the clearance, they were in the clear. Maybe we can assume then that if people are sometimes allowed to stay who recently cleared up there credit through bankruptcy then they will also view an job applicant’s recent discharge as a just as good of a solution to debt too. I’m hoping so..

[kartoons19]

Yes, please let me know how it goes. I would also be curious to know what is on the background check. Good luck getting that job!

I never received a copy of the background check. In this company HR doesn't seem to be on top of things, but that is another topic. The end result is I don't know if a background or criminal check, but not a credit check will still show a BK. I would think it does since it is public record, but I'm not certain. I would love to know for sure.

[ccsjoe]

I received a copy of my background, criminal, and employment credit report. I'll do a separate post about the contents lter this morning, but suffice to say I was offered a job not only in the financial sector, but handling securities. My employer placed more relevance on my pre-bk history (no lates, charge-offs, etc leading up to bk), current level of debt, and skills than on the bk event itself.

[ccsjoe]

My apologies to all here, I totally spaced and forgot to follow through on my promise of posting the contents of an employment background.criminal and credit check. Will do so pronto tonight or tomorrow morning. Thank you

[kartoons19]

Thanks Joe. I would appreciate hearing what the checks include, so I look forward to your post.

[rkg2004]

Hi, thanks for all the info. I guess I should clarify that I wouldn't be looking for a federal job or in the financial sector. I'm in the beginning stages of a career in clinical research in the pharmaceutical field. The only way that bk would directly impact my job is that I couldn't get an Amex for travel. There's a lot of people out of work even in this field so they can really pick and choose right now, which is why I'm kind of worried. But I'm accepting it more everyday, and our credit counselor said we should just deal with it directly in an interview, and not apologize to anyone. I liked that, I think it's good advice.