Pre-employment background check

[HopeinHorizon]

I just want to make sure I understand the law correctly, I have read much of the other posts on this topic on the forum.

I filed bankruptcy October 2005, it will be removed from my credit report October 2015. After it is removed from my credit report, any background check they pull, the bankruptcy won't show as part of public record or on my credit report, correct?

But, if the company I apply for does their own background check, they could always find the filing in public records, the 10 years only applies to consumer reports provided by a 3rd party company doing a check based on the fair credit reporting act, correct?

Then there is something that states they can report bankruptcies older than 10 years if the job is $75000/yr salary or higher...

I am asking all of these questions, because I have a Bachelor's in Business Administration, and am considering going back for my Masters in Accounting to sit for the CPA, but am afraid about my job prospects with the Bankruptcy mark against me. If I can find nobody to hire me before 2015, that will not be great, but at least I will know in 2015, I will be out of the woods. I don't fully understand some of the language of the law.

Any thoughts/advice?

[drowningNdebt]

To be honest I don't think the BK will pose to be an issue with a job. I was offered a job at a bank and I was pre BK. Credit is horrible. However, another issue arose and I couldn't take the job at this time.

[JoeSeattle]

I just want to make sure I understand the law correctly, I have read much of the other posts on this topic on the forum.

I filed bankruptcy October 2005, it will be removed from my credit report October 2015. After it is removed from my credit report, any background check they pull, the bankruptcy won't show as part of public record or on my credit report, correct?

But, if the company I apply for does their own background check, they could always find the filing in public records, the 10 years only applies to consumer reports provided by a 3rd party company doing a check based on the fair credit reporting act, correct?

Then there is something that states they can report bankruptcies older than 10 years if the job is $75000/yr salary or higher...

I am asking all of these questions, because I have a Bachelor's in Business Administration, and am considering going back for my Masters in Accounting to sit for the CPA, but am afraid about my job prospects with the Bankruptcy mark against me. If I can find nobody to hire me before 2015, that will not be great, but at least I will know in 2015, I will be out of the woods. I don't fully understand some of the language of the law.

Any thoughts/advice?

How old are you? I'm also studying for my CPA with the intention of opening my own office.

[magyar123]

You will never really find out why you didn't get the job. No employer will admit that they turned you down because of bad credit and/or bankruptcy. That would be discrimination.
Remember amployers' famous senrence - "We hired someone else with qualifications that are better suited for the position", or something to that effect.

[danaf]

How old are you? I'm also studying for my CPA with the intention of opening my own office.

ahhh - hence the real reason why you don't want to file bk w/ your wife....

[Flamingo]

On your credit reports, your bankruptcy (if Chapter 7) will be removed 10 years from the filing date. At that time, make sure you pull your reports and ensure it is all off. As to public information, BK does not disappear and is there forever. It does not appear on a criminal background check, only when a credit check is done during the period the BK will be on your records. However, there are some employment applications which ask "Have you EVER filed bankruptcy." You will have to answer "yes" because they can check. The only time a bankruptcy may have any impact on possible employment is if the job is in the financial sector or possibly a higher up position where your background might be in scutiny by others in the company or outside of the company. It is something that can always be found and brought up later (think if you were running for an office in politics). Most financial sectors jobs indicate to you during an interview or prior that a bankruptcy or bad credit can be a detriment to you getting the job; that is because the job probably involves handling of others money, accounts, financial information, checks or cash or the involvement in credit card accounts. The company is legally protecting itself from embezzlement and fraud by trying to keep out folks that may have a bad financial history. Unfortunately, that would include those that file BK although we all know all those that file do not fall in that category and would never embezzle or commit fraud. It's still the stigma of bankruptcy which hopefully will fade in time.

Remember, why do you think employers pull credit checks on a prospective employee? If they were not interested in how that person handles their finances, they would not pull it. Same as to criminal background checks - they want to see the backgrounds as to who might be working in their company and have access to all sorts of information.

The best thing to do is if you are vying for a position you want is to be open and honest if there is a background or credit check to be run. If you had a bankruptcy due to a job loss, divorce, major medical situation, etc., that would be viewed better than someone who wants a financial position in a company and went crazy with credit cards running up high bills they could not pay. Just be proactive about the situation if you sense there might be an issue and that could work for you as they see you have a high interest in the job and really want it.

Many people get hired with BK on their records...and this economy is dragging many folks down who have to file that never imagined in a million years they would have to file. Just be open and honest.