Chapter 13 and employment

[johnny]

I was 2 weeks away from filing chpt 13. Then, I was laid off from my job. My attorney is now telling me that I have to wait 3 more months before I can file. All of my debt is now reaching the 6 month period and they are all about to write it off. Would it be smarter to make them a miniscule payment to keep the write off's from hitting my credit report until I find employment? Has anyone had any problems finding employment with a chpt 13 or write offs on their report. This was just unfortunate timing...

[ShouldWeFile]

Are you behind on your home?

If not, then you may be able to file a 7 if you are unable to return to find viable employment right away...

If I were you there is no way I would pay on those accounts - the creditors should consider you 'uncollectable,' as you currently do not have a source of income.

Running a credit report prior to offering employment is becoming more and more common these days - you will likely have to explain your credit (no payments made for several months) if you make some small payments or not...

At this point I see no advantage in paying anyone...

[johnny]

Thank you. No, we are not behind on the home. I asked my attorney about chapter 7 and she told me I would also have to wait 3 months as well. I am just worried about finding employment with my credit history.

[Flamingo]

As to your now being unemployed, yes that is really bad timing and I feel for you - how awful! I had a similar situation but it occurred one month after we filed and prior to our 341 but I was able to find a position quickly though making $6,000 less.

Depending on what position your are looking for or the company involved, your bad credit right now could be a factor in hiring because it is going to stick out badly when they pull your credit reports, even though you have not yet filed. There is no guarantee. It may not have any effect at all. Many prospective employers now pull both credit and criminal background checks on all applicants; it's just due to the way the world is now. I suggest when you get interviews lined up that you thoroughly investigate the prospective employer/company as to their hiring practices in case you may run into some issues or questions.

You need a job to fund a Chapter 13. If you cannot find a job somewhat quickly, you will probably have to investigate Chapter 7.

[johnny]

Thank you for the insight. I am hoping more employers are more forgiving these days due to the overwheming amount of default going on.

[ShouldWeFile]

Late last year I was out of work and fell behind on several accounts.

When me and the prospective employer were getting more and more comfortable with each other he stated that the organization runs criminal background checks, drug tests, driving record checks (car dealership) and credit checks in conjunction with an application prior to an offer of employment being extended. The following day I emailed him advising him that my criminal check would be perfectly clear, drug test spotless, and though I may have one or two minor traffic violations in the last several years, there was nothing serious. I also advised that the credit check would come back as what I would characterize as 'poor,' and elaborated with details of the situation some more.

After completing my info for the required checks, I was told that everything came back exactly as I had stated, and was offered the position. I should note that the position includes significant cash handling and financial transactions and personal and confidential customer info. I believe my being upfront and honest did help in securing the position even though my credit was in shambles...

[StartingOver08]

Don't pay the unsecured debt.

You are filing BK and it will not help you one bit to pay a little toward the cards to keep the debt from charging off. Charge off is an accounting process - yes, the debt will be sold and/or assigned to CA's but you simply list the OC (original creditor) and the CA that is handling the debt at the time of filing.

Sounds like your attorney is looking out for you -

[johnny]

Thank you. I will not be paying off the unsecured debt.