Concerned about Employment Prospects Post Discharge

[jays567]

Hi All,

I've been using the search function all day on the topic of BK and employment but I really cannot narrow down a specific answer. So, hopefully some of you can point me in the right direction!

My wife and I are in the middle of our chapter 7 case. I am concerned that after we are discharged, I will have problems finding a job. I am currently in college pursuing an information systems business degree and plan to graduate in two years. I am really worried that the BK will kill my employment prospects. I don't plan on going into Finance/Banking/Government work...so should I really be all that worried?

Your thoughts are appreciated!

[HHM]

Don't worry about it.

In most states, nearly 1 in 10 people have filed BK and nearly all of them are employed.

The wierd irony is, the truly poor don't file BK (because they don't have access to credit). Economic downturn aside, the vast majority of people that file BK have jobs and continue to have jobs after the BK is complete.

[jays567]

Thanks HHM. Your answer gives me a little bit of hope.

[Flamingo]

You need to know that your Chapter 7 will remain on your credit reports for 10 years from the date of filing. During that 10 year period, many people who file have a hard time getting credit, mortgages and also jobs. However, there are those that do not. If you interview for a job and they advise you they are going to run a credit check, that is the time to be open and honest about your BK situation before they cold pull your credit report and see it. Unfortunately, BK still carries a stigma in the employment world that folks filing cannot handle their finances and may be more prone to embezzle company funds, open fraudulent accounts, steal, commit fraud, etc., etc. even though we all know 99% of us would not do that. However, we suffer because of those that have done it. That's just the way it is out there in employment land so you have to be one step ahead of the game especially in this economy and the growing competition for jobs.

[HHM]

people who file have a hard time getting credit, mortgages and also jobs.

This is where we diverge Flamingo, your statements on this particular subject tend to be more fearmongering and there really is no evidence to support the position. Having been in this industry for many years, the fact is, the vast majority of those that file BK have NO trouble with employment. As for credit, BK does not really affect the "availability" of credit, but in short-term (1-2 years) a BK affects the "cost" of credit.

[shabam]

I thought it was illegal for an employer to discriminate against someone for having filed for bk.

[shabam]

Hi All,

I've been using the search function all day on the topic of BK and employment but I really cannot narrow down a specific answer. So, hopefully some of you can point me in the right direction!

My wife and I are in the middle of our chapter 7 case. I am concerned that after we are discharged, I will have problems finding a job. I am currently in college pursuing an information systems business degree and plan to graduate in two years. I am really worried that the BK will kill my employment prospects. I don't plan on going into Finance/Banking/Government work...so should I really be all that worried?

Your thoughts are appreciated!

If you are going into the IT field I don't believe they will run a credit check. If you pursue a banking or finance position then this is a possibility. For every one company that does carry out a credit check I am sure there are others who do not.

A company would be stupid to solely judge a candidate on a credit report.

[TEW]

I thought it was illegal for an employer to discriminate against someone for having filed for bk.

yes it is illegal JMO I think employers could care less about a BK

[jays567]

That is good news then. I plan to work in IT management or business management. From what I've seen from my accounting and finance courses, I'm steering clear of those fields.

[Flamingo]

This is where we diverge Flamingo, your statements on this particular subject tend to be more fearmongering and there really is no evidence to support the position. Having been in this industry for many years, the fact is, the vast majority of those that file BK have NO trouble with employment. As for credit, BK does not really affect the "availability" of credit, but in short-term (1-2 years) a BK affects the "cost" of credit.

Disagreeing makes the world go round but, hmmm....., you only quoted in your posting just a part of what I originally posted...here it is in full: "During that 10 year period, many people who file have a hard time getting credit, mortgages and also jobs. However, there are those that do not." I don't base what I say on fear, more on fact. I have worked with HR Departments over many years since I am in the Corporate field. BK affects employment moreso than many think especially in the financial arena. It is well known everywhere in the business world that having a BK on your credit reports can be a hinderance to getting a job and well known in many financial areas that having a BK on your reports can prevent you from getting a job. That is not new news. The key is how the applicant approaches the situation and how it is dealt with during an interview for the position if the applicant feels the BK could be a problem if a credit and background check is done. That is why I always stress on here to be open and honest about one's situation with BK if you sign an application where it is indicated a credit check will be run prior to being considered for employment. It could give one that "edge" over another applicant with similar qualifications but no BK on their records.

[Flamingo]

I thought it was illegal for an employer to discriminate against someone for having filed for bk.

It is illegal only if the person is already employed and that employer fires the person directly for filing BK. If the employee can prove it was directly due to the BK and not another issue, they've got a good case. There are also corporate clauses in Employment Agreements for higher-ups that state if that person files bankruptcy, they have to notify their employer immediately.

During the selection process prior to employment and after credit and/or background checks are run and candidates considered, depending on the company's policies and other criteria if there are two candidates with good qualifications for the job, experience, etc., and one has BK on his records and the other doesn't, the odds are in favor of the person without the BK getting the position. That is just the way it goes. Of course one would have a hard time proving it was the BK but those behind the scenes in hiring and HR make the decisions.

[businessisbad]

I can tell you if you are pursuing government work it WILL definetly be a problem. It may not be a disqualifier for all jobs, but it will certainly be closely looked at.

I can speak about this topic due to my first hand knowledge. I was a police officer for 8 years, started a business and had a great 5 year run until 2007. I knew I was in trouble when one of my biggest customers filed bk and stuck me with a $62,000 invoice. This customer paid early for five years and out of the blue filed bk on me.

Anyway, when I explored going back to police work I spoke with the background investigator in confidence. He told me to get hired first as the BK would likely disqualify me with that agency. I went to another agency who told me if I can prove it was business debt only (incurred strictly because of the business)and not personal debt they would be okay with it but I would need to provide lots of documentation. A good friend of mine was disqualified by an agency for filing bk. They did not tell him this, as it would be against the law, but he was simply told he did not meet hiring standards. There are no other issues in his background to preclude him from employment.

If you are seeking government employment you may want to pre plan and apply before the bk, it will certainly make your process alot easier.

Hi All,

I've been using the search function all day on the topic of BK and employment but I really cannot narrow down a specific answer. So, hopefully some of you can point me in the right direction!

My wife and I are in the middle of our chapter 7 case. I am concerned that after we are discharged, I will have problems finding a job. I am currently in college pursuing an information systems business degree and plan to graduate in two years. I am really worried that the BK will kill my employment prospects. I don't plan on going into Finance/Banking/Government work...so should I really be all that worried?

Your thoughts are appreciated!

[IBroke]

This is where we diverge Flamingo, your statements on this particular subject tend to be more fearmongering and there really is no evidence to support the position. Having been in this industry for many years, the fact is, the vast majority of those that file BK have NO trouble with employment. As for credit, BK does not really affect the "availability" of credit, but in short-term (1-2 years) a BK affects the "cost" of credit.

I have to agree. It also makes a difference how each individual handles credit after the discharge. If you are passive, you will struggle to come back. If you are rebuilding your credit from day one and clean up your credit-report, you will be far better off. BK on file is NOT the end.