Bankruptcy and finding a job after... OY VAY

[paulka]

So I am coming out of my Masters Program in Education... I have been hearing horror stories, and have seen people firsthand being denied jobs in various sectors (retail, management, etc.) because of adverse credit history. My credit is horrendous. I haven't filed yet, but am on the cusp. My question is this: I know that a criminal background check is required for future teachers (I have a completely clean criminal record.. nothing... barely even a traffic ticket...) However, I am concerned that my credit is going to prohibit me from getting a teaching job. Any thoughts on this?

[JollyGG]

Just general bad credit is probably going to hurt you worse than a bankruptcy.
If you file then clean up your credit report and practice good financial management from here on out. It looks like you have straightened out any spending issues you had.

Additionally the Bankruptcy Code says:

11 USC 525(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, . . . solely because such debtor (1) is or has been a debtor under this title . . . (2) has been in solvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or (3) has not paid a debt that is dischargeable in a case under this title . . .”

A bankruptcy case out of the Southern District of New York (Leary v. Warnaco SDNY 2000, 251 B.R. 656 (Bankruptcy 2363.1) held this applies to all aspects of employment, including hiring.


Now that doesn't mean that can't find another reason to not hire you. All this really means is that they can't admit they didn't hire you due to bankruptcy.

[whywhywhy]

I used to be a branch manager at a bank before faced with life changing events that have caused me to consider filing..

Obviously, you are probably looking for something a little bit more advanced than a branch position at a bank, but - be honest with the person interviewing you. If they ask about credit problems, tell them. I hated being lied to. My HR person had a rating system they used to rate scores, tests, and all that crap, if I knew about your credit problems in advance, I could do my best to get around it with my HR person before they pulled the credit report. Most people have a reason for filing bk, not simply because they didn't want to pay their bills. Also, it was easier for us to get someone bonded when they had filed vs. just having bad credit

Hope this helps

[cathywhite4495]

I'm a teacher and I don't think you have anything to worry about. I've never had my credit report pulled when applying and interviewing. Your background check also shouldn't be an issue. They're looking for criminal acts. I do know one person who had a bounced check that went to court and it showed up on her background check but didn't stop her from getting her cert. I also know of at least one person who had a BK and then finished college and had no trouble with the check or cert.
So...you should be fine. I don't think I would bring it up if you're interviewing for a job. I guess if you were applying at some really ritzy private school things might be different
Good luck on the job hunt - it is a tough market right now!

[paulka]

Thank you :-)

Thank you for your responses! It brings me a little peace of mind to know that there are others out there like me, and your insight is very helpful!

[6ftladycop]

Credit History, Bankruptcy and getting Hired for a Job

So I am coming out of my Masters Program in Education... I have been hearing horror stories, and have seen people firsthand being denied jobs in various sectors (retail, management, etc.) because of adverse credit history.

Well, my response is a little different from some of these. I am like you, I have seen first hand folks being told some other reasons why they were denied a position when in reality their credit report was checked and that was the actual reason. I once asked a guy at Homeland Security why credit checks were necessary for the application process and he explaned to me that ethics and the reliability of a person were involved which lead me to believe that he and more in the personnel office looked unfavorably at people with bad credit as though they have done something wrong even though all of us here know that this is not true.

To me, its probably better to tell you that it depends on who you want to work for and what would be required of you if you took the position. The places that I have had personal experience with are banks, city jobs, a job as a leasing agent with a realtor, mortage company, finance companys, and like that. I am not sure why they checked on the credit of people that I know who worked in these jobs, but they definitely did. We all figured that this was just part of the hiring process, but I,m sure its more than that. The people who hire who participate in this type of thing would have to be looking for something and as I mentioned before, credit reports have a whole lot of information that even we are unaware of.

Take a look at them and read them from cover to cover, front and back....you,ll see.

[CityGirl]

My friend got a managerial position with a HUGE company right after filing chapter 7 and they could care less. They're really looking for criminal unless you're dealing with cash.

[CindyLou]

I work in a hospital in california. Every employee has to sign a consent to have their "consumer report file" pulled. It is actually a criminal background check. Just so happens the law requires the same form for both. So even if you apply for a job and find youself signing a consent, just know it is probably for the background check, especially in your line of work. I can't think of any reason that it would matter what your credit history is....good luck and congrats on the education program!!!

[JRScott]

You should be fine finding a teaching job.

Although it is illegal to discriminate against you if you have filed bankruptcy, it is often a matter of bonding that keeps you from some forms of employment.