Looking for a job and or a promotion and you filed bankruptcy in the recent past? Let’s say within the last 7-10 years. I am going to start this article by first stating that it is illegal for an employer not to hire or promote a possible employee or current employee because this person has filed a bk in the past. This is illegal, but it is legal to consider bad credit, which usually comes before a bankruptcy.
Bad credit is wide spread and it affects everything you do. From loans to home rentals. Almost half of the credit checks reported result in possible employees having bankruptcies, judgements, liens and collection accounts. Credit checks are very common for companies that are involved in accounting, valuable merchandise, finance, cash, or if a security clearance is needed.
Here is some advice we offer in the event you are in such a situation with unpaid debt or a past bankruptcy.
Part of your job application may be to have a credit check. Ok, but first you will be asked to sign a permission slip authorizing the procedure. You know your financial situation. Be truthful. If you lie, you will surely be fired or not considered.
There maybe a credit report run or you maybe asked to give permission for a background check to be run. It is your right to ask what the background check includes and how they intend to use the information. Make sure you take this advice. In the event they do run a credit report, ask for a copy. You can be prepared by running a copy of your report yourself. There are many sites on the internet where you can get credit reports, background checks and more.
You can check here Instant Background Checks includes criminal background check, property value, lawsuits, judgments, bankruptcy, liens and much more.
Assuming or knowing your credit needs repair or you have filed bankruptcy, be ready to provide a short direct explanation to your interviewer. Have proof about your story, for example a divorce, medical problems, death, unemployment, etc. You must be able to explain your strong points showing that your poor credit does not affect your working abilities. Reference your former employer and have the interviewer call. The fact that a potential employer pulls a credit report on a potential employee does not mean that the job candidate will not get the employment.
Generally, when a company does a background check they also do a credit check. The credit check would be in addition to and the job decision is not based soley on the credit. It maybe used as an extra reason to deny credit, but not the primary reason.
Not getting the job is disappointing, but being qualified and meeting all the requirments at times is not enough. If you do suspect a company is using your bankruptcy as the reason not to hire you, don’t be afraid call and ask if your credit was the problem and which area of your credit or unpaid debt was the issue.
If the answer they give you is bankruptcy, you can file a complaint with the EEOC, US Equal Employment Opportunity Commission and call the US Federal Trade Commission’s Consumer Response Center at 1-877-382-4357. You can also contact the local consumer protection agency or your state attorney general.
Remember you are dealing with government offices so do not expect much action on their part but do make the effort to contact them and be persistent. If you are a low-income earner, you can seek help from legal aid.
These are agencies you may contact:
US Equal Employment Opportunity Commission (EEOC)
US Federal Trade Commission Response Center 1-877-382-4357
FTC “Fact Sheets About Employers Use Of Credit Checks
Privacy Rights Clearing House “Fact Sheets 16, 16a and 16b”
Credit is a major component in our society so it stands to reason the bankruptcies and unpaid debt, collections and damaged credit weighs heavily on work opportunities. There are ways to clarify potential problems as addressed above. The best way to get a clearer picture of your situation is to run a credit check and background check on yourself. Easily accomplished with todays internet content. If you know that credit has been an issue then do yourself a favor and run a credit check and background check before applying for a promotion or before seeking work.
Interested in avoiding bankruptcy? Check here.
”By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest.” – Confucius
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