How do you explain to employer?

[Flatbroke1]

So, when your employer pulls a routine credit report as part of your employment and sees the bankruptcy, how do you explain why you filled? How do you explain that you didn't tell them (especially when you should have told them about your problems)? In our case, in a nutshell, we went through many years of poor financial planning that snowballed and there was no way out. We tried credit counseling, we tried Dave Ramsey, we tried contacting our creditors to settle on our own, we tried a credit lawyer to try to settle for us, etc. Actually, we spoke to a few coworkers about our situation (not bankruptcy, just that we were having problems). There advice was, "don't tell, what they don't know won't hurt them". So, what is the best way to explain? I know I will be "roasted" and probably deserve it.

[mrskal]

Why does your employer pull credit reports is my question. If you must tell them, just tell the truth is my personal opinion.

[Flatbroke1]

Just part of our original hiring and job contract. I knew they would probably find out sooner or later, but I still wasn't in the mood to say anything back then, and still don't care to talk about it now.

[Flatbroke1]

Actually whatever the fallout, it is almost a sense of relief now.

[Pandora]

was it a condition of employment initially - as in prior to the job offer - or is this something that they state they can/will do continually over tenure? If prior to job offer (as most places that have this practice employ) then wouldn't they have pulled your credit prior to you coming to work for them?

I've never heard of an employer mandating a credit pull to guarantee on-going employment. I thought there were laws in place against terminating anyone due to filing BK...?

[AngelinaCatHub]

was it a condition of employment initially - as in prior to the job offer - or is this something that they state they can/will do continually over tenure? If prior to job offer (as most places that have this practice employ) then wouldn't they have pulled your credit prior to you coming to work for them?

I've never heard of an employer mandating a credit pull to guarantee on-going employment. I thought there were laws in place against terminating anyone due to filing BK...?

I have to 'echo' Pandora's concern. I can see this upon employment unless perhaps you have a high security clearance or work in a banking field. I would think it illegal if you suffered a job loss if they knew this.

Here is my take on this. If you have been working there for some significant time, your boss knows your qualifications. If you were not doing your job, you would not have it now. I would just mention it as a casual "matter of fact" and don't go into detail.

Something like, "Hey Mr. Jones, may I have a word with you. [Mr. Jones] Yes. [you] I thought I would just mention to you that due to the economy and some other personal financial problems we have had, we thought it a prudent business decision to file a Chapter 7 bankruptcy. I thought you should be the first to know as a courtesy to you, rather than to hear if from others."

This puts you into a good light and makes him feel "special" that you had that courtesy. Being Public Record anyway, the sentence is true and much better than he asking you, after the fact.

'Hub

[wipetheslate]

I don't think I would preemptively divulge the bankruptcy. But if your employer asks about it I would talk about how it was extremely difficult to do, but you had to because it was in the best interests of your family. You had to look beyond your pride, blah, blah, blah, and think about your dependents. And when you put your family first, bankruptcy was the only option.

[meateater]

Flatbroke1,
Did you get information that they are going to be checking your credit in the near future? Do you have any information that they are going to ask you about it if they review your credit report? Are there any negatives other than the BK on your credit report?

I'm in a similar situation, I filed while working at the job I now hold (i was about to be sued by a creditor). I never told anyone. I checked employment handbook (nothing said I was required to divulge filing BK). I didn't worry about it at all, until I interviewed at another company and realized the BK was likely the reason I didn't get that job. Now, due to changes in my company structure, it looks like I need to interview for my current job. I have no idea if they intend to do background checks (I think they won't, but no guarantees).

I can't decide whether to volunteer this information or assume they'll ask if/when they find out about it and if they consider it a concern. Like the OP, I almost wish someone would ask as it would be somewhat of a relief not to feel like this could come out anytime. Flatbtroke1, depending on your industry, they could be checking to verify address, confirm eligibiliity to work in the USA, etc. rather than because of any concerns about credit or BK. For me, the concern would probably be embarrassment to the company.

Before folks start with "don't lie, honesty is the best policy, be honest and upfront," I do not intend to be dishonest or lie IF asked, and it's clear that the OP is also planning to be truthful if/when asked. The issue is whether information about a past BK should be VOLUNTEERED when no one has asked.

Flatbroke1, was there a policy that you were supposed to divulge filing a BK when it occurred? If not, there was no reason that you "should" have told your employer about the filing, and I would not be worrying about not telling them about it earlier. If there was a policy that you were supposed to tell them, I'd look over the wording of the rule carefully, then think of doing something along the lines of "I was going over the employee handbook and just realized that I should have informed the company of my filing BK, so I'm telling you now."

[Flatbroke1]

I applied for a promotion a few months ago and signed giving permission to pull all the routine investigative reports. I knew this day would come eventually. A few days ago I noticed that they had pulled my credit report. I sent a one page letter to the person who would be reviewing my credit report explaining what had happened..."years of poor financial planning but we are on track now and this has all been a learning experience, etc.". I received a very kind and compassionate letter thanking me for opening up and explaining that if I am "on track now and managing my finances well now" that is good enough for him. For me it was a happy ending.

[free2breathe]

Congrats on the happy ending