Unemployed and Filing BK

[jellybeans26]

I am so glad I found this forum. I met with a BK attorney in 2010 and stopped paying everything. I decided to wait it out and see if the job market got better.

Since then my life has been a train wreck financially and an emotional rollercoaster. I don't have a bank account. I am looking for a job in the financial field (entry level Accountant). A friend told me I am making a mistake filing BK. I don't think so because I doubt a company would hire me with the way my credit is now. I would respect someone more if they took control of their finances vs someone who just let things go. I know I am not a deadbeat. I will be glad to explain that to any potential employer. I want to eventually move to a new city and start over but can't do that because I can't rent an apartment.

I really wanted this position working for a bank. HR told me I would have been in finalist if it wasn't for my credit. I am deciding to take charge.

[LadyInTheRed]

Welcome to BKforum, jellybeans 26!

From what I've read, I think you are right that you are more attractive to an employer if you have resolved your financial problems. People in desperate financial difficulties are more likely to give in to the temptation to steal from their employer if given the opportunity. A lot of people will tell you BK will ruin your life. The credit industry has done a good job of convincing people of that. But, I have yet to hear from somebody who filed BK that their life was ruined by it. I hear (read) all the time about how much filing BK improved people's lives.

The only problem with filing BK before you have income is that you will still have problems paying your living expenses. Make sure you won't get back into debt after your BK!

[AngelinaCat]

I second Lady's comments. Welcome to the forum!

[bcohen]

The idea that bankruptcy will prevent you from obtaining a job is a myth, perpetuated by the banking industry, in an effort to deter people from filing. The truth of the matter is that employers would much rather see a person who has filed for bankruptcy and now has zero debt, versus a person who has thousands of dollars in collections and charge-offs. The reason for this should be obvious: a person who has a lot of debt is going to be under a lot of stress, which could impact their work performance. Once the debts are discharged in bankruptcy, the money isn't owed anymore, and any collections activities must stop, which eliminates any such stress. There is also a theory among employers--which I do not agree with--that supposedly people who are heavily in debt are more likely to steal, embezzle, or engage in unethical business practices.

In fact, when I asked several recruiters for companies I wanted to work for if bad credit would be a problem, I was told that the company requires that any defaulted debts be paid, settled, or discharged in bankruptcy. Therefore, I filed for bankruptcy and discharged the debts. I just graduated from college this May, so time will tell if these companies are willing to hire me now that I filed for BK or not.

[bluediamond2077]

how can they say you need to repay any defaulted debts? that's not right. How can they do that by law?

[LadyInTheRed]

how can they say you need to repay any defaulted debts? that's not right. How can they do that by law?

They can't make you do anything. But, there is nothing in the law that prevents them from making it a condition of hiring. It is important to note that the condition was to repay the debt, settle it or discharge it in BK.