For purposes of obtaining employment, is it better to file BK, or do nothing?

[bcohen]

I have read the opinion (on another thread here: http://www.bkforum.com/showthread.ph...ter-bankruptcy) that prospective employers consider it WORSE to have filed BK versus someone who has poor credit and many charge-offs.

This concerns me, because I am planning to graduate from college in December of 2013 with a B.S. in Computer Science, and most (if not all) of the companies I would be interested in working for will require credit and/or background checks. I was originally planning to do nothing (i.e. not file) until and unless I get sued, or receive a job offer which would put me over the means test.

I currently have numerous charge-offs and collections from 2008-2009 (but nothing newer than that) and no open credit cards, loans, or other positive accounts. My total debt currently stands at more than $35,000 and grows each month due to JDB's adding interest. I have not been sued on any of these debts, but the SOL here was recently extended to 6 years.

I do not currently have any assets which can be seized or liened, nor do I receive any garnishable income, however I am worried about finding work when I graduate due to companies' use of credit scoring as a metric of employee honesty/reliability. I had attempted to obtain an internship this summer, and applied to several companies which were actively recruiting at the university which I attend. I did get an interview at a prestigious company which I very much wanted to work for, and the interview seemed to go well, but I was never called back after the background check. Since I do not have a criminal record, this must have been because of my poor credit situation.

So now, I have one more summer to hopefully obtain an internship, and then one more semester after that to hopefully find work. I am now VERY concerned about what I can do to pass these credit/background checks in order to get hired, and if bankruptcy would improve or worsen my chances of this.

[Bell30656]

In my personal opinion, I would rather see a bankruptcy and then some positive credit over the recent history. The fact is a job interview is where you sell yourself. If you have a challenged credit history, you have to be able to overcome the hesitations toward it with other positives.

[ValleYum]

I personally think you should try to file BK now and have some credit rebuilding time before next summer. As a former employer, I would rather see someone who has taken care of their financial problems/issues rather than have them hanging around their neck like an albatross.

Yup, what Bell said!

[LadyInTheRed]

I agree with Bell30656 (ETA: and ValleYum). Different employers will view a BK differently. But, your credit report is probably in such a state that they aren't likely going to like it without the BK any more than they do with the BK. Right now, your credit report shows somebody who is currently having financial difficulties. With a BK followed by some positive items, you would look like somebody with financial difficulties in their past. The best way to get hired despite your credit history is to be up front during the interview process and show that you have learned from your past mistakes.

[bcohen]

I did not discuss my credit issues at all during the interview, and I am not sure how to raise such issues in an advantageous manner during an interview. The questions which were asked were mostly about personality/ability to work on a team and about technical matters. The consent for background check/credit check was done as part of the application process, BEFORE the interview was granted, though I assume they don't bother to run your credit until AFTER a satisfactory interview.

[BobMango]

I was in the process of filing for bankruptcy when I was hired by the Feds. My background investigation wasn't completed until 6-8 months later. When I spoke with the investigator, he indicated they didn't really care about the bankruptcy, just to see if I was taking care of my affairs or ignoring them. He seemed to indicate it would have been a problem if I had lots of financial issues that I was ignoring. He also asked if I had told anyone about filing. I indicated that my family, some friends and other acquaintances all had been told. He confirmed this when he interviewed them later. In this case the focus was on whether I could be blackmailed with this information.

All in all, I would think a bankruptcy would not be as bad as continuing to have unresolved issues, as long as you don't file and then get right back in trouble. Good luck.

[thall]

I did not discuss my credit issues at all during the interview, and I am not sure how to raise such issues in an advantageous manner during an interview. The questions which were asked were mostly about personality/ability to work on a team and about technical matters. The consent for background check/credit check was done as part of the application process, BEFORE the interview was granted, though I assume they don't bother to run your credit until AFTER a satisfactory interview.

Why would you bring it up? If they ask that's one thing, but I wouldn't bring it up unless they did. There's no point in shooting yourself in the foot. They may not even care.

[bull1978]

Bell30656 hit the nail on the head!!! However, since reading your question I've done more research for you. I see you are form the state of Arizona and I ran across this bankruptcy hotline. Give them a call, I'm pretty sure they can further help you. The number is [deleted by moderator] they are open 24/7. I wish you the best of luck.

[LadyInTheRed]

Welcome to bkfourm, bull1978.

Please read the forum rules, including the one prohibiting posting of phone numbers.

[LadyInTheRed]

Why would you bring it up? If they ask that's one thing, but I wouldn't bring it up unless they did. There's no point in shooting yourself in the foot. They may not even care.

If they run a background check, they'll find out about it. Better for them to hear it from bcohen so he/she comes off as honest and can explain the situation.

bcohen, I'd say something like: When you run a background check you'll see that I filed BK last year. I had some financial difficulties, but have put that behind me and have learned a lot from my experience. I'm happy to answer any questions you have about it and hope it won't jeopardize my eligibility for the position.

[btbeme]

I would much rather hire someone with a BK than someone with massive debts and one hand in the till.

That said, I am not "everyone," and some jobs require a clean financial history (and don't consider the fresh start you get with BK to be clean).

Graduating with massive debts - especially non-dischargeable student loans - in this world is a double-whammy...no job experience and low pay. Frankly, I don't see it getting much better for a loooong time, if ever. We are graduating many many fine people with terrific brains and tons of go-get-'em, but are hanging thirty years of prohibitive payments around their necks and wishing them best of luck. And since the feds are now the Sugar Daddy providing the security for almost every student loan available, it is highly unlikely that anything will change for the better. They would rather obligate you to a life of state servitude in exchange for loans and loan forgiveness; all the while growing the tax burden on every single taxpayer in the nation. It is an unsustainable Ponzi scheme, and it is a disgusting mess.

When I am elected King Of The World, I'll allow everyone two freebie BK filings - one right after college, the second immediately before retirement. Until then, I say do what you need to do to be EMPLOYABLE, which might well mean being forthright and honest in your financial assessment. If you need to BK, then BK - and let the chips fall where they may when it comes to employment. Working for a starving wage because you couldn't get The Job because of a BK...that has to be better, if only slightly, than working for a higher wage and starving because you can't pay the bills. The latter sounds an awful lot like indentured servitude.

[Tater]

My husband and I are filing bk next week and I am in the process of looking for a job. I have three interviews next week and I plan to be upfront and honest about my situation when it comes to a background check. I understand that it's hard to find a company that does not do a credit check these days. I had an interview a few weeks ago where I told them about my situation and they seemed to be appreciative of my honesty. I thought the job would be twenty minutes from my home but the office I would have been working in was an hour from my home. In fact, one position I am interviewing for in person next week, I have already discussed our circumstances with the HR rep during a phone interview. She thanked me for my honesty and an interview was scheduled during that conversation.

[HHM]

If the choice is between BK and utterly trashed credit (years of unpaid bills, unending collection accounts), BK looks better.

Granted, you cannot control any single individuals personal prejudices, but on the law of averages, BK shows you taking care of the situation.

[Drazil65]

I agree that the Bk would look better in the sense that everything is a zero balance after the Bk and you can start on your rebuilding immediately. There are many stories here from people that are 1 year to 18 months out from their Bk and their scores are already on the way up. If you do not file chances are your credit history will be negative with all the balances showing and a mess as far as the employer is concerned. With half the world in a bad way financially there are so many people with Bk in there history at this point that I am sure you will not be the first they will see with it or the last. Good Luck!

[bcohen]

Thank you all for your advice. I guess I will need to file before I graduate. I had hoped to just let the debts "fall off" of my credit reports, but if that's going to mean no (good) job before 2016, then I can't wait that long.