Getting a Job + Renting a House + Losing my Home

[helpme2010]

Hello everyone, I posted my current situation below, but figured I would ask anyone for feedback about advice for getting a job either with a bad credit report or post-bankruptcy. Also renting a house post-bankruptcy. But really, I am worried about getting a job with a bankruptcy on my record. Any feedback and suggestions would be very appreciated!!!


My situation:

Hello everyone, I finally signed up with this site. Thank you for such a good quality website. I am considering going bankrupt as I am running out of options. I own a home, I lost my job over a year ago, I am on unemployment, I owe over $50,000 between my credit cards and home equity loan. The real problem happened when over a year ago all the creditors cut my credit lines (this had never happened to me before, so I couldn't tap into my home equity line of credit for example). I have renegotiated lower payment plans with my creditors, but some are now wanting things to go back to normal payments again.

My credit score now sucks, I opened my recent credit report and it shows I am in foreclosure status and have a bad report also from my home equity loan that I stopped paying probably 6 months or so back. Now one of my credit card companies is refusing to renew my lower monthly payment program for another 6 months and states this will soon be reported on my credit score as well.

I will be getting my degree in August and am hoping this will finally open up jobs that I have never been able to get before. However, I will have bad credit scores showing up when the companies interview me. I simply can't afford to keep making all of these payments as unemployment only goes so far and I am digging into what little cash reserve I have left.

I am assuming if I go bankrupt, that this will really look bad when I apply for jobs, but if I explain to the employer my situation and the fact that my mortgage company went under, my car company had to be bailed out, and my city and state have all had to be rescued, perhaps they will take this into consideration. But if I don't go bankrupt, I am just racking up more and more debt, the credit card companies are increasing how much I owe each month and I am piling up more and more bad ratings on my credit report anyways. One credit card company is hounding me and refuses to work with me.

I was worried about finding a house to rent after going bankrupt, but would have enough cash to cover a first and last and security, plus assuming I could get the job after getting the degree from college, I am hoping I could get a fresh start. Plus as some of you have posted, some home owners are willing to rent to those with bad credit, assuming we are good people and they are hungry for a renter.

I am not sure whether to go bankrupt or not, but eventually the decision may be forced upon me, as I am running out of time and options and its just getting worse and worse. The 2 reasons initially for not filing bankruptcy was to keep my house and to have a positive credit report when applying for a job. Now, it's more about survival.

I would love to have some dialogue with some of you about ideas and options.

Thank you so much.

[helpinfla]

First things first. Dont look at the situation with any emotional attachment whatsoever. Start looking at it in black and white business terms. You mention $50,000 in CC and HELOC. How much is your house underwater? Is the first mortgage covered? How much do you expect to get paid assuming you find an average job in your field?

Here is why you ask these questions..... If you are in school as a med student and becoming a Dr and going to make $20k per month then no dont file. If however you expect to make $3000 per month and you will be underwater for years and years and years...then you have to ask whats the point?

Most of the time people are overly optimistic as to their ability to reasonably pay off their debts. In those cases its likely best to get a fresh start.

[ROB37LAW]

First things first. Dont look at the situation with any emotional attachment whatsoever. Start looking at it in black and white business terms. You mention $50,000 in CC and HELOC. How much is your house underwater? Is the first mortgage covered? How much do you expect to get paid assuming you find an average job in your field?

Here is why you ask these questions..... If you are in school as a med student and becoming a Dr and going to make $20k per month then no dont file. If however you expect to make $3000 per month and you will be underwater for years and years and years...then you have to ask whats the point?

Most of the time people are overly optimistic as to their ability to reasonably pay off their debts. In those cases its likely best to get a fresh start.

My biggest regret was not filing sooner.

[Flamingo]

There has been so much posted as to employment, getting a job and filing bankruptcy/having bad credit. Please do a forum search on this subject. I myself have made numerous postings in response to questions like yours so please search those responses/threads for the information you need as to employment.

Yes you will have trouble with anything credit related or possibly job related with bad credit, foreclosure, repossession or filing bankruptcy on your credit reports. There is no guarantee how bad things will be that you encounter as there are mild issues for some and major for others. The situatoin is what it is and you have to handle things as they come. Research all those threads/postings and best of luck to you...

[helpme2010]

Flamingo, I am searching through the articles throughout this board. I am finding so many useful topics as well. I have a lot more searching to do and will take your advice as you point out that many of my questions and concerns have probably already been answered in other threads.

I am concerned because I can either look for a job with a bad credit score with multiple bad marks against me on my credit report (such as a foreclosure status from my mortgage company, a bad home equity loan mark against me, and now at least one credit card company that will soon post a bad mark on my credit report. When I am interviewing with large companies for a good position, these credit ratings I'm sure will haunt me. The question I keep running up against is how much worse will it look to have a bankruptcy instead?

I am so far in debt and the amounts the creditors are penalizing me for just keep piling higher. Discover card refuses to work with me in any way (I have to pay the full new monthly payments, period).

This is my single biggest issue right now is how I am going to get a job with bad credit. The amount I owe is also a nightmare. If I get a job and later lose it, it will be so much harder to declare bankruptcy then, as I will have shown an income threshold that may be used against me. I'm not sure.

There has been so much posted as to employment, getting a job and filing bankruptcy/having bad credit. Please do a forum search on this subject. I myself have made numerous postings in response to questions like yours so please search those responses/threads for the information you need as to employment.

Yes you will have trouble with anything credit related or possibly job related with bad credit, foreclosure, repossession or filing bankruptcy on your credit reports. There is no guarantee how bad things will be that you encounter as there are mild issues for some and major for others. The situatoin is what it is and you have to handle things as they come. Research all those threads/postings and best of luck to you...

[jtallerie]

I just got a retail job about 3 weeks ago. They made me sign papers to run a credit check. I signed the papers and I was up front about my really, really bad credit.

I am in a management position for a company that has 900 stores, I have the keys to the store and I handle cash. Some company's have stoppped running credit checks due to the recession & high unemployment rate.

I was offered a job from another retailer (800 stores) about 6 months ago. They had me sign papers for a credit check and they offered me a position. I was honest with that employer about my credit history.

I was told that they were just going to check for criminal, the papers for the credit check are just a formality. I was told that the company does not want to pay for credit checks any longer.


I have a friend that had his house forclosed on and he was able to get a management job in a very large retail drug store chain. His credit was just as shot as mine and they hired him. Banking or something like that might be different.

I have heard lots of companies stopped running credit checks but they don't broadcast it. Good Luck