I have been unemployed for 14 months, and each interview, I was asked to sign documentation that stated a credit report would be ordered.  I filed Bankruptcy in 1997, and it is still showing on my credit report.

Throughout the long, arduous task of looking for jobs, not once was I told that I did not get an offer due to my credit.  And not once did I disclose at any point that I had filed bankruptcy.  I did receive one letter in the mail from a credit agency that disclosed that a credit report had been ordered for employment purposes, and the only derogatory item on the report was the bankruptcy.  The credit report was ordered by a local private college that I am working for part time.  It had no bearing on my employment status with them.  I have been working for them for four weeks, and I disclosed that I am continuing to look for a full time position, and I would accept another position if the offer was right.

Two weeks ago, I did receive an offer as an executive with a Fortune 200 company, and it was contingent on a background check (for a security clearance) and a credit check.  I still did not disclose, or discuss my bankruptcy.  I was contacted this week and advised that the background check, and credit report had been received, and there were no issues.  I am happy to say that I will start my new job in two weeks, and the pay is much more than my previous position I held more than one year ago.

I have done hiring for many years, and the employer I worked for ordered credit reports as well as background checks.  They were required due to the need for licensing with the appropriate state authorities.  The determining factor whether someone would be hired or not based on credit was this:  What does the credit history show?  Is it a continual problem with handling money, or was it a one time incident?  If a bankruptcy appeared, how old was it and did problems continue with credit after the bankruptcy?  And, what was the applicants credit score?  Are they overextended?  Are the credit cards maxed out?  Do the run over the credit limits?  We were not interested in the reasons why someone filed bankruptcy, nor did we ever ask.  (Remember, everyone uses "medical bills" when explaining credit problems whether it is true or not, and there is no way to verify this.  What fool would say they have to have the latest in fashion and jewelry and can't stay out of the mall?)  If a potential applicant had a problem with credit, it was likely the licensing authority would refuse issuing a license - and the individual would then be terminated as they would not be able to do the work.  The bottom line is credit is a good indication of stability and it is used for much more than evaluating someone for a job.  Your car insurance carrier orders credit reports to determine rate categories for instance.

As for me, my bankruptcy was due to medical bills, and it was a horrible, humiliating experience.  I was making good money, and had a good job, but it doesn't matter when medical bills are insurmountable, and you max out credit cards trying to pay what insurance didn't cover, and your credit card payments snowball to the point you cannot keep up.  The creditors discharged in my bankruptcy were not medical providers, it was credit card carriers.

The message here is this:  I do not advise bringing up your credit at any interview.  No matter what you say, the potential employer will not make a decision based on why you filed bankruptcy, or why you are consistently late.  Your history is what is important, and a credit score sums it all up.  By bringing up your credit, you may close the door before even getting out the gate when it may never have been an issue to begin with.  If you have ongoing problems with your credit, and you have a low credit score, avoid applying for jobs that require you to handle money, or require a professional license.  Also, the higher the level of authority, the more likely credit will be an issue.  It is highly unlikely you will be hired for a management or executive position if your credit is poor.  In my case, yes there was a bankruptcy on my record, but my credit has been perfect ever since, and my credit score is high.

As an aside, the one thing I have learned when it comes to finances is to plan for the unexpected, and always save for that rainy day (job loss, unexpected bills, etc.)  Some credit problems simply cannot be avoided, but most can.  Being unemployed for 14 months drained my accounts, and I did run up some debt on my credit cards to bridge the gap.  (However, I did not have anything on my credit cards at the time I lost my job.)  As a single parent, I didn't have another income in the household.  I cannot imagine where I would be credit wise had I not planned for the "rainy day". 

As for bringing up health issues, stay away from that also unless you have to.  I was let go from my previous job because I ran out of job protected FMLA.  I only brought it up when asked why I left my previous employer, or if I had ever been terminated.  I said "I ran out of job protected FMLA, and didn't have a return to work date.  Due to the level of responsibility, they made a business decision to fill the job.  I was medically cleared to return to the workforce six months later, and the health issues have been totally resolved."  NEVER disclose what your medical issues were.  It is none of their business, nor is it legal to ask.

I hope this helps.

Hello!

First time on this format.  To the point.  If you are well established in Detroit area, and need to relocate, you will eat a large amount of cash at the sale of your house.  Not everyone, but most people who have refinanced to finish a basement, put on an addition, or pay off debt, own a home that is worth about 35% less than it was two years ago.  For most people I know who make between $50 to $80, there is no chance of relocation because they just don't have 10 to 15 thousand to bring to the table to sell their house, let alone move.  A bk might be the only way to make it work for a new start.  I don't think that (the MI market crash) is anymore anyones' fault than a medical bill.   ?

sodod

venus...

It is true that you should address the problem before a credit check is done, but keep it short and sweet. Don't get into details about illnesses and insurance payments and kids going to college.

"Before you run the credit check I want you to know that I had to file for bankruptcy because of my husband's mounting medical bills and my being laid off. I am working hard to re-establish myself and hope that you will understand."

The issue of bankruptcy will usually surface after a background or credit check.  It should be briefly explained that your outstanding bills or credit cards got out of control and there was no other choice but to file for bankruptcy because some creditors were resistant to a workout plan, etc. and that things have now greatly improved.  There is no need to bring up or discuss medical bills.

Gotta question for you...you said you were fired from your job.  How do you deal with that question in an interview?  How much detail do you provide?  When completing application, what do you put in the box for reason for leaving?

Ok, it was more than one question.  Sorry, but the others came as I was typing this.

 

Rena

 

Venus, typically most applications will ask if you were fired. And these spaces are limited so you have only a choice of Terminated, Voluntarily Left Company or resigned. I always put Terminated or Fired if it was available.

During the interview, the interviewer will ask, "It looks likes you were terminated. What were you fired for?"

In my case, I had a manager who did not like me. I was one of the most popular employees in my building of over 300 employees. Everyone came to me with questions and requests. In addition, I was always getting gifts from clients who used our products because I resolved issues between them and my company. My manager did not like it that I was getting a lot of attention like that so he found every little thing to write me up on and finally, after the second mistake (which I agree was my fault) he fired me. But I had over 17 years experience with this company to his 2 years. I couldn't believe my personnel manager took his side of the issue since I knew her for over 17 years. It hurt because I dedicated myself to this company and was treated like common waste.

I have had some rough periods since being fired in 2004 and I explained them to my interviewers and they all told me my education and work histories is all that matters when I had long term employment. A smart recruiter will see that a 17 year veteran just doesn't screw up so suddenly like that.

Venus, a lot of people here will tell you DON'T divulge your firing. I have hired a lot of people who were fired just like me. I do not like to judge others who were fired. I know there are a lot of people who were unjustly fired. Guess what? The people I hired that were fired are all doing fantastically for my company!!

Venus, I am here to help because I know what it is like to be fired, to have credit problems and other issues most of us face here. Ask me any time!

As advice101's posting in this thread notes, a bankruptcy can stay on one's credit record for up to 10 years.  This is so under the U.S. Fair Credit Reporting Act.  (For the record, I declared, and received a discharge in, Chapter 7 bankruptcy myself in 1997.)

Even though U.S. law makes it illegal for employers to discriminate against anyone who has filed for or received a discharge of debt through bankruptcy, how does one prove such discrimination?  Without a "smoking gun" from an employer (and few are that blatant or stupid) and a good bankruptcy or employment lawyer on your own side, job applicants and employees are often left with "fit" or other vague "reasons" for not being hired or promoted.  (Interestingly, while the law prohibits employment discrimination on account of bankruptcy, it says nothing regarding such discrimination on account of debt!  Okay, so why do most if not all people declare bankruptcy?)

Maybe if we again had an economy where most employers, instead of routinely preferring the young, gullible, malleable, and, above all, cheap, sought instead of rejected well-qualified, experienced workers rather than force them into months and years of unemployment or underemployment (can you say "overqualified"?), we'd see fewer bankruptcies.  And maybe if more employers recognized that a good job is the best path toward financial stability and security, they'd start applying the same rules that they apply to themselves to the rest of us.

Can that happen?  Not unless we demand it through political action, legislation, and otherwise.  Perhaps the best place to start is by asking our new Congress to repeal the bankruptcy "reforms" (read:  deforms) of 2005 and once again make bankruptcy the refuge it was meant to be for honest debtors in over their heads largely because of factors beyond their control--medical bills, job losses, and like problems now rampant among many in America's now-endangered middle class.  Let's also drastically curb the use (and abuse) of credit information in employment decisions.

Write your U.S. representative and your two U.S. senators today and call upon them to do this.  Get at least 10 others you know to do the same.  Do this all this week.

Don't think, "It can't happen to me."  Remember that most of us, likely you included, are but a few missed paychecks away from ending up where all too many of us already have--not only jobless and/or otherwise in desparate financial straits, but, in some cases, worried about paying the rent or mortgage or even for food.  Bankruptcy is a much-needed "safety valve" that should work for us all, far from pleasant or desirable, but sometimes all too necessary. 

Oh wow, yours sounds so much like mine.  I worked at the local government level for 23 1/2 years when in 2002, my supervisor cut my position from the budget and terminated me.  It took me 18 months before I was able to get hired into another County position and part of the settlement was that my time merge over immediately.  That brought me up to 25 years of service (you can retire at 30 years regardless of age).  My job was a public health first responder (called the PHRST-5 team) and I really loved what I was doing.   We had an opening for nurse and pharmacist and the team leader involved me in all aspects of hiring.  He wanted one nurse that we interviewed and I wanted another.  I was able to convince him to hire the one I preferred.  That was the end of June 2004.

Boy was that a mistake!!  Everything was going well until they started drinking on the job and the times we were out of town, after seminars were over, they would drink from about 9 pm until 2 or 3 AM   Well, in early August 2004, we were supposed to return home from a mission (3 1/2-4 hour drive).  They did not return to their rooms until 4 AM and we were supposed to pull out at 8 AM.  I packed up the office and loaded all my stuff in the SUV, then checked out of my room.  After waiting about 30 minutes, I called my boss and he said they changed their leaving time until noon.  I thanked him for letting me know and told him I was driving to the beach since I had nothing I could do.   I contacted our Fleet Manager and asked how long did they have to wait until they could drive and she said 12 hours after the last drink.  Man did he get pissed when I told him about that call!

I got lost coming back from the beach and was really late getting back.  They were all standing like a pack of wolves, waiting in the parking lot.  No one would even speak to me!  My boss threw my stuff out of the SUV and put all their stuff inside.  He threw my stuff in the sedan and told me I could go by myself as no one wanted anything to do with me.  Shortly thereafter, our State Auditor called me for some information and I unloaded on her, crying all the while.  I had to pull off the interstate because I made myself sick crying so much.  I saw the SUV drive past me while I was sitting on the side of the road.  Finally, I pulled myself together, but could not handle the 70 mph speed limit.  I got off on side road and drove through the country on another state highway, continuously stopping because of being sick and head hurting so bad from the stress.  It took me 7 1/2 hours to drive home!  I even called their cellphone and let them know I was sick and they did not even offer any assistance.

When we returned to work, he really let me have it!   From that point on, they treated me like garbage.  The nurse bitched about everything I did--there was no pleasing her.  She did her best to make me look bad by scheduling meetings on top of things I had already scheduled and by not including me in stuff that would later be my responsibility.  It really made for a hostile environment!  Anyhow, when the flu vaccine shortage came about, we were on conference calls daily with the State Public Health.  One of those days, my boss was not going to be in and he delegated the conference call responsibility to the nurse, even though she was in a training class (class was 8:30-11:30; conference call was at 2:00).  The State sent out an email with a tremendous amount of information for us to forward to our counties.  Since my boss told me that I was not to do anything with that conference call, I did not forward the info.  The nurse never called in to let me know what was happening with her.  At 2:00, I made the conference call and found out that she had just slipped into the office and was on the line.  Our County Public Health Directors began complaining about not receiving the information that was being referenced.  I immediately forwarded it out with a note apologizing for not sending earlier, but Steve left Wendy in charge and I thought she had taken care of it.  That incident was one of the grounds for my termination as well as some other emails written to a so-called friend.  She was forwarding everything I told her to my boss, without my knowledge.

Anyhow, to make a long story shorter, I have 27 1/2 years service, but don't even know if I am eligible for my State Retirement.  I have an attorney fighting my case because they violated all kinds of our personnel rules and regulations.  But it has been dragging on for over a year and still no closer to getting things resolved.  My attorney thinks the stress from the long hours and the fact that I was doing two jobs (had over 250 overtime hours in 10 months--not counting any time taken off that would not have been reported as earned time).  I spent the best part of 3 months coordinating the training and on the road every week traveling for a project.  Our Health Director backed them, three against one, so she believed all their lies and stretched half-truths. 

Now, how do I explain about my termination without going into all this detail?  One interview, I mentioned that I told on them for drinking on the job and they terminated me for whistle-blowing.  Big Mistake!!  Nobody will hire someone that is labeled a whistle-blower. Since then, I have been saying that in my almost 30 years of employment, I have never met an individual that I could not get along with, until we hired this nurse and there was absolutely no pleasing her and she made the environment so hostile that I had no choice but leave.  They don't ask for me to elaborate, but then I never get that magical phone call that they want to hire me.  Any pointers?

 

 

 

 

 

 

 

For the future, you made a lot of tactical errors in dealing with your last job.  Don't make those again.  While you should blow the whistle if you feel you need to, don't be surprised if others aren't going to be happy about it later.  And the way you did it was more like tattling than really being concerned about their driving.  Unloading on the State Auditor was really over the top and totally inappropriate.

As to the next job, I'd say that you were terminated due to a conflict in management style and leave it at that.  I wouldn't say anything about any of the rest of this.  You should also look at employment outside the public sector since this ill will has probably spread through the local government circle (unofficially of course).

Tess

I was friends with the State Auditor and she was calling to see how things went with our deployment.  Also, it was time for her follow-up on team leader evaluations.  She just called at the most inopportune time and she talked me through some harsh feelings.  I was not worried about their driving, but about me being in the vehicle with them.  The Fleet Manager and I used to be in the same office and worked closely together for about 5 years.  We became good friends and I told her that this was not an official call to report, but a friend needing advice from a friend.  She did not take down the information as a complaint.  However, my boss did not know this and he got back and blabbed to everyone in management about the incident.  (Our Health Director was asked to resign because of a DWI in his personal vehicle--they were in a county-owned vehicle). 

I am not defending my actions; however, there was wrong done on both sides and I paid the price.  Between the stress, depression, starting into menopause and being overworked, I acted totally out of character.  According to my therapist, their actions fed my paranoia, which made the depression worse. 

I do like your response about the management style and think I will try using that.  I have an interview with another governmental agency next week.  Keep your fingers crossed and say a prayer for me.

Thanks for listening!!

Rena