Credit Checks, Bankruptcy And Employment

November 19th, 2009 by Reed Allmand

Job Application and Bankruptcy

If you’re applying for a job in finance, accounting or a position that requires the handling of cash, expensive merchandise or a security clearance, you may be subjected to a credit check. If you’re behind on your bills, have delinquencies, defaults, judgments or liens, there a few things you should know.

While a company is restricted from not hiring you simply because you filed bankruptcy, they may be allowed to deny you employment if you have bad credit.  However, if they were challenged in a court, they would need to prove that your poor credit demonstrated that you would not be able to properly perform you duties.

Before you begin your job search, order all three of your credit reports. Remember, you are entitled to one free credit report a year.  Once you receive your credit report, review it closely. If the credit report reveals blemishes such as delinquencies and defaults, you need to develop an explanation for potential employers. Even if you have an old bankruptcy, it may be wise to be prepared to explain why you filed for bankruptcy and/or why you have blemishes on your credit such as late payments.  Keep your explanation simple and clear.  Example: “I filed bankruptcy because of my divorce” or “I lost my home to foreclosure because an illness to forced me to quit work.”

If an employer informs you that they are not hiring you simply because you filed bankruptcy, file a complaint with the EEOC and call the US Federal Trade Commission’s Consumer Response Center at 1-877-382-4357. You can also contact your local consumer protection agency or your state attorney general.

avatar

About Reed Allmand

Website

Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

View all posts by Reed Allmand

Subscribe

Subscribe to our e-mail newsletter to receive updates.

FAQ

Why do I need to submit a new wage order when I modify my plan

When we modify your bankruptcy plan we are changing your plan payments. This means that we have to get with your employer and change the terms and amount of your wage order. The only way we can do that is by filling out a new wage order form.  

Learn More
What happens if the stay terminates on my home?

If the bankruptcy stay terminates on your home that means that even though your in bankruptcy, your creditor can pursue all there legal remedies they can pursue if you were not in bankruptcy. This includes foreclosure, and having your house sold and evicting you from your house.

Learn More

Find Location

map
  • Dallas Bankruptcy

    5646 Milton Street, Ste. 120 Dallas, Texas 75206
  • Fort Worth Bankruptcy

    860 Airport Freeway, Suite 401, Hurst, Texas 76054
  • More Locations

Meet Our Clients