BK better than no BK for background check for job?

[metoo]

I'm on the edge of filing a CH7. Have not paid anything unsecured in over a year and house is in foreclosure. Had perfect credit prior to that. I am close to getting a job offer that will require a background check (Banking). The check is pass/fail with no ability to give an explanation of what happened. I know this company has hired others that have had discharged BK's recently. So the check is obviously not all credit driven. Am I better off to have a BK in process or a ton of debt that is not getting paid when they do the background check? My thought is that you are better off in a BK than teetering on the edge. Someone on the edge might be inclined to do stupid stuff to try to save themselves vs someone in a BK will soon have no debt and no reason to get stupid.

Any thoughts on this?

[HHM]

Your current situation would look WORSE to an employer than if you file BK. Someone who hasn't paid bills in a year, foreclosed, and has DONE NOTHING to resolve the situation is far worse than someone who filed BK and SOLVED their debt problems.

File BK and solve the debt challenge. The 10%+ that are unemployed right now are not unemployed because they filed BK (being unemployed may drive them to BK).

[jdbrew222]

I'm actually in banking now, and close to filing for Ch 7. All of my debt is real estate related. I have grave concerns about my employer finding out about my filing and firing me, but I think I might be a little irrationally worried about this, etc. I guess I agree with the posting above; at this point it would look better to have addressed the issue than to let these debts continue to accrue.

[helpme2010]

Job questions & BK Questions

HHM, you are my hero My situation is identical to metoo's post. I am about 70k + in debt because I lost my job a couple years ago. I am guessing 20k on credit cards, 40k on home equity loan and the rest on my mortgage payment. I am a week away from getting my bachelor of science degree, which not having this degree prevented me from getting much better jobs. Now I could potentially break the 6 digit barrier when I get a job. I am also running out of cash, just enough to hire a BK attorney (I am considering selling my organs for cash )

I was scared about filing bankruptcy because of interviewing with large corporations due to the credit check. My previous credit was excellent, but now I have a bad credit rating from one credit card for not making payments, plus my home equity loan not making payments, plus my mortgage is listed in foreclosure on my credit report. My credit card company calls me a dozen times a day. I just need a fresh start. I took all the actions necessary to prevent this crisis from happening again, including living very cheaply and getting a college degree.

So I am thinking about declaring bankruptcy, then I can apply for jobs, then I don't know how long until I get kicked out of my house, then rent a house closer to my family and a job.

1. So you believe BK will look better than having all that bad credit on my report?

2. If I filed August 1st in California, do you have a rough estimate how long the BK process takes until I am discharged?

3. What happens if I find a job offer in the middle of the BK proceedings? Will this cancel my BK or throw it into a chapter 13 instead of my chapter 7 I need to file? Or how long after filing bankruptcy can I start hardcore job hunting again and hopefully get a job offer?

4. My home mortgage is ending my loan modification program I set up at the beginning of August, so if I stop payments and my foreclosure continues forward again, do you have a rough time estimate of how long I can stay in my house until I am evicted? I understand the BK proceedings will stop the foreclosure process, but when the BK ends, do I still get a few months left to stay in my house while I look for a job and another home to rent?

5. Any advice for employer interviews and to a home owner whom I want to rent a house from?

Thank you so much for reading all this, plus this excellent board.

Your current situation would look WORSE to an employer than if you file BK. Someone who hasn't paid bills in a year, foreclosed, and has DONE NOTHING to resolve the situation is far worse than someone who filed BK and SOLVED their debt problems.

File BK and solve the debt challenge. The 10%+ that are unemployed right now are not unemployed because they filed BK (being unemployed may drive them to BK).