Potential job with bank after bankruptcy but issues.....

[freakedout]

Trying to figure out a solution to this problem. I am a former bank employee in middle management. My position was eliminated and I have been unemployed for about 8 months. We are getting ready to file chapter 7 next week. This week my former employer called me and said they have an opportunity they want to talk to me about. This position would pay almost the same as what I was making and would be perfect. Two problems - my credit score is horrible now AND I have 2 mortgages with them - one I am defaulting on for about $275,000 for a house we no longer live in. ( Bought a new house and was never able to sell the old one).j I assume they won't hire me if they are charging off a large amount of money. Any ideas how to handle? They are contacting me next week to discuss further.

[DSIG]

do you feel comfortable discussing this with them? If they see that you are open about your concerns they may reconsider. Or you gamble -- say nothing and hope they dont stumble across the pebble. The two departments may not even be related or talk. I was afraid my corporate amex card would get cancelled because I filed bk on amex, but nothing happened. Big institutions are too big to be that efficient to know if their employees are defaulting on them

[Faust]

Yes, I would talk to them openly and honestly. I don't think you have anything to lose and everything to gain! They may work something out special for you. I see all kinds of deals fly through my office (title company) that normal people would never see but since the parties involved are from a bank or something related, they get breaks.

Try it and let us know!

[backtoschool]

In banking, bankruptcy is an issue. You can talk with them about it, but it may be a deal breaker, especially if you deal with money directly or budgeting directly. Banks are notoriously bankruptcy unfriendly.

Your best bet is to be honest with them, but also be realistic that banks are not bk friendly.

[momisery]

If they run credit again on you then I would say you probably will not get the job if this is a larger bank. But, if they don't they will never know, I certainly am not telling my bank. I have a friend that filed when she was working for a smaller local bank, and they kept her no questions asked. They liked her job, they knew she would not steal from them no matter what.. so they kept her. If they asked me about it I would not hide it, but my bank is not asking, they like me the may promote me next year I hope if things get better.. so why tell them? If I tell them I know I would lose my job because I work for the largest most conservative bank in the US.

[frogger]

Best to be honest. Just because you are bankrupt doesn't mean that you're a thief.

[OhioFiler]

Your former employer knows your work ethic and skill set and is about to offer you a new position. Be positive! I don't see why they would bother doing a background check on you anyway.

It is unlikely the bank you worked for owns the mortgage. They may service it but that's not the same as owning it. I wouldn't let your pending Chapter 7 filing keep you from pursuing the position. Certainly, the bank would recognize they contributed to your current financial situation if the subject were to arise.

[NoMoreCards]

If they run credit again on you then I would say you probably will not get the job if this is a larger bank. But, if they don't they will never know, I certainly am not telling my bank. I have a friend that filed when she was working for a smaller local bank, and they kept her no questions asked. They liked her job, they knew she would not steal from them no matter what.. so they kept her. If they asked me about it I would not hide it, but my bank is not asking, they like me the may promote me next year I hope if things get better.. so why tell them? If I tell them I know I would lose my job because I work for the largest most conservative bank in the US.

I agree with Momisery. I also work at one of the nations largest, conservative banks (might be the same one). But I am not volunteering this information to them, as I like my job too much.

The big question is will they re-run your background/credit check or use the previous one. I suspect they will re-run it, as HR needs to keep current records on stuff like that. But I would not volunteer this information.

[daytona]

the thing that is interesting to me tho is that if you actually file a BK then you are already dealing with your debt problems vs not filing and being more "desperate" to resolve any issues. A thought at least....You certainly can't be "fired" from any employer (high level govt jobs aside) for simply filing a BK (unless they want to pay you a HUGE settlement for violating federal laws) With a BK getting hired could be a little tricky and they will run a new background check on you...

If I were you I would WAIT to file the CH7 until at least after you see how your interview goes...if you get a job you can then file.

[mkuki]

I was in your shoes several weeks ago, and I decided not to tell them.

Let them run a credit/background check and make a decision based on their findings, not due to your "honesty". How you deal with your finances (or attempt to clean the mess) is your business. They are hiring you to provide a "service" for them.

The need for your service, will determine the longetivity of the assignment. Remember, they terminated you for "business reasons" so they are hiring your for the same "business reasons". It's nothing personal, so your heart's trials & tribulations need not be professed.

I filed ch7 1 week before I accepted a position in a bank, then gave them a 1 month delayed start date to ensure they "dig up" whatever dirt they wanted to know. Nothing to concern them has come up so far, therefore my conclussion is that we are good to go. I have been on the job 1 month so far, and everything is looking up....more money (than prev job) and no debts to stress about (crappy credit/fico...dont care, it's cash for me all the way, and I've never seen so many thousands in my savings since like 24 months ago)

[AZfarmer]

So you worked for them, they laid you off. That was a business decision for them.

Job market is rough. No income for 8 months makes it very hard to stay current on your bills. Not their fault, but not like you borrowed the money expecting to be unemployed.

Your former boss called you directly to rehire. You clearly have a relationship there that is valuable. Out of respect for the guy that is looking to rehire you, you should be upfront with him.

Now here is the real question. If you were to be rehired immediately and the bank would work with you on late charges and the like, would you still file BK? If they saw an opportunity to not have the debt be discharged, they may actually look favorable at a deal like that.

If, however, you absolutely will file for sure, file now or immediately prior to restarting your job. Get it out of the way so you start with a clean slate.

Good luck, and congratulation on getting a shot at a job, finally

[debtprison]

Best to be honest. Just because you are bankrupt doesn't mean that you're a thief.

To normal people with common sense this is true. But to many in the corporate world... Very sad. I wish "freakedout" luck.

Added: Something else which is very ironic: Haven't a lot of banks recently in effect filed for their own version of bankruptcy themselves?

[BrokeMike]

Added: Something else which is very ironic: Haven't a lot of banks recently in effect filed for their own version of bankruptcy themselves?

I hope they all file before me.

[Flamingo]

You will get all sorts of versions on what to do. If you were in middle management previously as you stated you know your credit standing will be an issue and I am surprised you don't know what to do. You know your credit will be rerun as you will be a new employee so I would be prepared for anything from that if you don't wish to say anything. Honesty is the best policy in your situation since you worked for them before. If they schedule an interview first with you before running your credit, that isi the time to be open and honest - by all means accept the interview to show your interest and sell yourself as much as possible to them as to what a great employee you would make. Since you worked for them before that is your key. Best of luck to you!