How will this Ch 7 affect my employment prospects?

[Gracious]

I am filing Ch 7 on Wed and was thinking how will this affect my job hunting prospects. Who will hire a 62 YO with poor credit and a bankruptcy ch7? I paid all my bills for 43 years and had a 793 FICO score until the credit card companies decided to change their guideline midstream demanding 5% instead of 2% agreed to 2 years ago, cutting my high limit down to what I owed them and there by lowering my credit score and increasing my interest rate from 7.6 to 19% and I never missed a payment. then they all gang
tackeled me. I will never trust a credit card company or a bank again.

[HakunaMatata]

I'd hire you. You've demonstrated keen business sense, assertiveness, logic, and positive action!

Bad credit/BK can impede employment; although, this tends to be limited to specific industries. Many employers want permission to do a credit/background check and they often focus on past criminal behaviors.

[BBW]

I am also worried about this...

[downsized]

We're also concerned about this. My husband lost his job last winter which is what finally pushed us into BK. We, too, were dealing with the perfect payments on credit cards that were lowering limits and raising rates and then BAM!, unemployed! So far, though, the engineering industry here is still pretty much at a standstill so that's not the hold up with finding employment. Hopefully, once he's at least offered an interview, BK/credit checks won't be an issue. One thing I did notice is that even though we're fresh out of BK, his credit score is still close to 700. We were current on all bills until we filed and I wonder if that helped. Sounds like you were, too, so maybe your credit isn't quite as bad as you suspect even with a fresh BK?

[howtoplan]

AMEN - never trust the banks again.

I bet you will find the employers will be much more understanding of the bankruptcy filing. We are not alone. Maybe the HR person filed in the past

[nortrip]

BK will definitely destroy someone's employment prospects with many organizations, particularly those involving financial or asset management. This is true not just for professional positions, but also for the support staff positions, such as admin assistant, secretary, etc.

Many organizations that include a credit check in their pre-employment screening will regard BK as justification for screening out an applicant. This is true especially for white collar industries.

As someone mentioned earlier, however, how BK is perceived by the employer varies from industry to industry. Some industries possibly aren't so concerned with BK, so maybe what I'm saying here doesn't count everywhere in the white collar job market.

[HakunaMatata]

We're also concerned about this. My husband lost his job last winter which is what finally pushed us into BK. We, too, were dealing with the perfect payments on credit cards that were lowering limits and raising rates and then BAM!, unemployed! So far, though, the engineering industry here is still pretty much at a standstill so that's not the hold up with finding employment. Hopefully, once he's at least offered an interview, BK/credit checks won't be an issue. One thing I did notice is that even though we're fresh out of BK, his credit score is still close to 700. We were current on all bills until we filed and I wonder if that helped. Sounds like you were, too, so maybe your credit isn't quite as bad as you suspect even with a fresh BK?

My brother-in-law is a Detroit based engineer as well. He, too, lost his job. He was recently discharged from BK. After many months of job hunting, he secured employment and BK wasn't an issue. A fresh BK trumps credit scores...and his score was significantly less than your husband's score. Thankfully, his BK/poor credit didn't hinder employment.

[Amy26]

I work for the gov't and have a security clearance. I was inquired about my bankruptcy but it was not an issue. They are more concerned with why you filed for bankruptcy... did you rack up a ton of gambling debt and then file... did I spend frivilously and then decide I wanted it gone... no. They understood the circumstances around why I filed and that was it.

I don't really think it will be an issue for anyone ... employers will not check your credit until they have offered you a position and you have accepted. At that point, they want to hire you based on your skills. If at that point your bankruptcy becomes an issue, then you probably don't want to work there anyways.

[FILFEDUP]

GRACIOUS/EMPHATHY
Think of the similar situation at AGE 74 with no time left to recover.
The ccc,s have NO SOUL
GOOD LUCK

[JSFleischman]

It is illegal for an employer to discriminate against you based on having filed for bankruptcy. Period.

Bankruptcy will NOT destroy someone's employment prospects with most companies involving financial or asset management. Many financial institutions will deny an applicant with outstanding past due accounts because it makes them (theoretically, at least) a security risk.

Once the debt is discharged, you have (seemingly) less of a motive to dip into the company till.

In the past I have been referred clients by large financial institutions for the specific purpose of filing a bankruptcy so that they can be employed by the company.

[bellee]

I personally will start working for myself again.


Unless you're dealing with money and/or need a security clearance I dont see a problem.

That being said, DONT bring it up.
Downplay it.

[leena]

The word now is that about 45% of employers are doing a credit check. How this is used varies widely from industry to industry, even among those employers who do credit checks.

Financial, retail, and security positions from the receptionists on up to the VP's have been known for this practice for some time. However, while one late payment might doom you in one company (like most banks, they are crazy on this topic) a full tilt BK may well not be a problem for another position because they are looking only ay unpaid outstanding debt, which is discharged in BK.

In my industry, credit checks are uncommon. Personally, I would not work for a company that did them for a whole bunch of reasons, and in fact felt that way when I had spotless credit.

[sjcmCA]

http://www.quizlaw.com/bankruptcy/will_filing_for_bankruptcy_a.php

Check this out.

I saw some articles regarding the security check for a navy.

If an applicant has a lot of debts, there would be higher possiblity for any wrong doings.

Who is the better candidate between a lot of debts carriers and a fresh starter?
If you have thought of BK, it means there are a lot of debts to handle.

BK is better than carrying a lot of debts.

However, HR manager in a private company screens BK. It totally depends on HR managers preference or the policy of the companies.

As written in the article above, there will be much less issues of BK with governments since it's strictly prohibited to screen BK.

[CCsAreEvil]

It is illegal for an employer to discriminate against you based on having filed for bankruptcy. Period.

I think most people who "hire" others probably know that it's illegal to discriminate for BK.. however, it doesn't mean they will use another reason to not hire you, even though their primarly reason (in their mind) is because of someone having filed for BK. It's the same thing for anything. If a potential employer did not like your demeanor or looks during an interview. Problem is "proving" they are discriminating.

I actually spoke with an HR representative (over the phone) for a small defense contracting company about a year ago. For some reason during the conversation, he started shooting off reasons for people not being able to obtain a job there. One was "no bankruptcies". I'm surprised he even said that.

[leena]

I think most people who "hire" others probably know that it's illegal to discriminate for BK.. however, it doesn't mean they will use another reason to not hire you, even though their primarly reason (in their mind) is because of someone having filed for BK. It's the same thing for anything. If a potential employer did not like your demeanor or looks during an interview. Problem is "proving" they are discriminating.

I actually spoke with an HR representative (over the phone) for a small defense contracting company about a year ago. For some reason during the conversation, he started shooting off reasons for people not being able to obtain a job there. One was "no bankruptcies". I'm surprised he even said that.

Also, BK discrimination is not illegal in all fields. In banking for instance it is legal (they can actually ask you if you have *ever* filed BK). In anything that requires a series 7 or 8 certification it is not only legal, it is mandated. You can't have a BK on your record for the past 8 years and be a broker, for instance.

Defense contracts are often related to Government employment, and they have special exemptions sometimes to that law as well. If however, the company was not exempt, that HR guy was not very smart. Large lawsuits can come from small comments!