Refused a job b/c of Bankruptcy!

[empireforest]

Last month I was hired for an 18-month consulting gig, which was to start in February. This week the client (who ran a background check on me) rescinded my contract b/c they discovered I filed bankruptcy last year.

What's up with that? Can I expect this to happen any time I apply for a job?

[Help!]

"Investigation Of Bankruptcy Records

Can an applicant be denied a job because he or she has gone bankrupt? According to the Bankruptcy Code, no private employer may terminate the employment of, or discriminate with respect to employment against an individual who is or has been a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt is or has been a debtor or bankrupt under the Bankruptcy Act, has been insolvent before the grant or denial of a discharge or has not paid a debt that is dischargeable in a case under the Bankruptcy Act."

Do you have anything in writing?

[magyar123]

What is weird is that the outfit actually admitted that it was your bankruptcy that failed to land you the job. Normally it's just the usual amployer crap - we have found someone else with better qualifications.
Wonder if Obama knew that the guy he nominated for Treasury Secretary hadn't paid his taxes but only did it retroactively once he was nominated.

[justbroke]

Last month I was hired for an 18-month consulting gig, which was to start in February. This week the client (who ran a background check on me) rescinded my contract b/c they discovered I filed bankruptcy last year.

What's up with that? Can I expect this to happen any time I apply for a job?

Much of this depends no the type of job. While an employer may not discriminate solely based on a Bankruptcy, they may consider the facts around the Bankruptcy when it is applied to certain positions.

For example, expect to not be newly hired into a position with fiduciary responsibility (financial services)... although that could happen. Also, expect issues in jobs which require a security clearance. People in debt are well known for accepting money for secrets. It just is what it is.

If you want to share with us, the type of job it was (financial services, automotive industry, defense industry, high tech manufacturing, telecommunications, entertainment industry, etc), then maybe we can apply some additional parameters around what that industry may see with a BK on your file.

[Tromploi]

Also, I was wondering if this was a contract as an IC or were you actually being hired as an employee? That might make a difference too, when hiring IC's the rules aren't as strict.

[empireforest]

The job was a W2 position - technically a full-time employee, with the understanding that the 'project' would probably only last about 18 months. The position was training advertising executives on software that is used to manage radio advertising accounts, travelling to different markets, training for about a week in each one. The owner of the company called me and told me - I don't have anything in writing.

I am not as concerned with this particular job, since I have another job that I am more interested in. I am more concerned moving forward - if this is going to be a recurring issue.

[jeb]

Empire, I would send the info that Help put above to the man you spoke with and put him on notice he MIGHT have a law suite placed against him - - just to give him something to worry about. - jb

[jktrading]

Much of this depends no the type of job. While an employer may not discriminate solely based on a Bankruptcy, they may consider the facts around the Bankruptcy when it is applied to certain positions.

For example, expect to not be newly hired into a position with fiduciary responsibility (financial services)... although that could happen. Also, expect issues in jobs which require a security clearance. People in debt are well known for accepting money for secrets. It just is what it is.

If you want to share with us, the type of job it was (financial services, automotive industry, defense industry, high tech manufacturing, telecommunications, entertainment industry, etc), then maybe we can apply some additional parameters around what that industry may see with a BK on your file.

But after a BK, you wouldn't exactly be in debt anymore. One would think the chances would be greater for job denial if you owed a lot of money. After BK, you shouldn't owe anyone. Student loans and reaffirms aside of course.

[jktrading]

Empire, I would send the info that Help put above to the man you spoke with and put him on notice he MIGHT have a law suite placed against him - - just to give him something to worry about. - jb

I would just move on. Most everything happens for a reason.

[justbroke]

But after a BK, you wouldn't exactly be in debt anymore. One would think the chances would be greater for job denial if you owed a lot of money. After BK, you shouldn't owe anyone. Student loans and reaffirms aside of course.

True, but some care about the underlying issue, and BK doesn't fix all people's bad habits. Having wrote that, I agree with what you are saying... however many employers don't see it that way.

[Flamingo]

Last month I was hired for an 18-month consulting gig, which was to start in February. This week the client (who ran a background check on me) rescinded my contract b/c they discovered I filed bankruptcy last year.

What's up with that? Can I expect this to happen any time I apply for a job?

Not yet reading the other responses you received on here, your employment was probably contigent on you passing a background and credit check. That will be stated somewhere in the paperwork you signed or indicated in some other documentation you received and signed for. Also it appears you were hired as a consultant on a temporary basis so that could play in the scenario also. Read that contract you signed over carefully or any other paperwork you received....a company does not have to hire you if you have a bankruptcy on your credit reports just like they don't have to hire you if you have a felony on your background check. That is why they do those checks. You can also not be hired for failing a drug test. Company's have policies in place to protect themselves and their bottom line. When it can be a problem as to bankruptcy is if you are already working at a place and file bankruptcy and the employer finds out and fires you directly because of you filing bankruptcy. Then you have a case.

[Grider]

My opinion,, hire me on my qualifications, not on my credit. You don't know why I am in this predicament. I think it should be illegal to check credit for a job , and I told them so in D.C. The freakin FICO score, will now keep all those folks who have been laid off or co's that closed on them and now begin to get bad credit from getting a new "good" job. and this is a FACT. Was it the poor employees fault NO, not always. It should be illegal, just as they used to put your marriage status on your Credit report and used to make you take lie detector tests at one time,,, I am a great worker,, but bad things have happened which I had no control,,, we need to all write our congress to change this particular rule,

[BnkrptcyLwyr]

Last month I was hired for an 18-month consulting gig, which was to start in February. This week the client (who ran a background check on me) rescinded my contract b/c they discovered I filed bankruptcy last year.

What's up with that? Can I expect this to happen any time I apply for a job?

It is a violation of 11 USC 525 for a private employer to discriminate solely because of the bankruptcy.

Talk to your bankruptcy attorney ... you may be able to sue and get damages.

[justbroke]

It is a violation of 11 USC 525 for a private employer to discriminate solely because of the bankruptcy.

Talk to your bankruptcy attorney ... you may be able to sue and get damages.

Bankruptcy Lawyer... how many of these cases have been successful? Not trying to be a bother, but isn't it hard to prove? Can't they just say that it was a combination of your financial condition, and not solely the BK.

As you wrote, the key word in 11 USC 525 is solely.

[Tbornetun]

All they would have to respond with is that the OP did not pass their background check and they would win the case. Not worth pursuing in court, it would be a waste of time and money.