I’ve always heard that a bankruptcy will prevent a person from obtaining certain jobs, but I’ve never known anybody who seems to have found it to be an issue. My mom, my sister, and my wife have all BK’ed, and so have a lot of other people whom I know and have known. It’s almost like it’s the thing to do these days. So what types of jobs are unobtainable for a person who has a bankruptcy on their record? Also, are things changing in this regard because of the current economic crisis? Are employers loosening their restrictions in this area in light of what has occurred during the past year?
Where would an employer find out about a personal bankruptcy?
It’s on your credit report, I guess, but do employers regularly get a credit report on employment applicants?
Are we talking of an undischarged bankrupt or a discharged one? Because the former will prevent you getting many jobs where security is an issue over here (U.K.). And you can’t stand as a MP.
A discharged bankrupcy is another matter and is generally not a disqualifier.
I’ve previously been told that the attitude to bankruptcy is very different in America,
It seems to be pretty much par for the course these days. I had a credit check run on me for a $12/hr. job at a drug store earlier this year. They’ll run a credit check for just about anything more sophisticated than wearing a paper hat and scooping French fries.
If you’re applying for a job that requires you to be eligible for and maintain a security clearance, you’re very likely to be rejected. Several job postings at my current company require this, and you can bet credit checks are done on every single applicant. Poor financial history is one of the main causes of rejection for a security clearance, so if the employer thinks you’re likely ineligible, they may decide not to waste the time/money trying.
I suppose it’s possible jobs in Finance and Accouting may require the applicant to have a clean credit report as well.
I worked in securities, and either the SEC or our brokers/dealer required clean credit. Don’t remember which.
My husband’s got classified clearance and they required it as well. (They also needed to check mine, and have me list all the foreign nationals either of us know. I work in international business. It was a long, long, long list.)
When hubby worked for the state of Maryland, he was in charge of Y2K remediation for the state prison system. This meant he was in and out of many prisons in the state.
A credit check was important to them, because they figured someone with a poor credit score was more susceptible to bribery from the prisoners/guards (being bribed to bring in drugs/other contraband).
Don’t know if having a bankruptcy on his report would have hurt his chances at the job or not. But I do know his total score was pretty important.
My step daughter lost her job at a bank when she had to file bankruptcy.
I’ve applied for several government jobs where they search your credit history, including any bankruptcies. For some, it’s a deal-killer, for others not so much.
My gaming liscence for a local casino required a background check and info on any businesses I’ve run. Makes sense for that, given the temptation to gamble.
In my state, when you apply to the Bar you are required to disclose bankruptcies (along with a whole bunch of other crap) on your bar application and they take it under consideration. My understanding is that a poor financial history makes you look like someone who is more likely to mishandle client funds.
Many, many employers run credit checks on job applicants these days. It’s a growing norm, even when the job doesn’t require any particular security clearance or money-handling. There is starting to be some push-back about it, but it hasn’t slowed yet.
Anyone working around *Armored Cars needs good credit and probably anyone else who works around large amounts of money.
*They are called armored cars aren’t they? That doesn’t seem right since they’re big trucks.
To answer your first question, technically no jobs are unobtainable for a person who has bankruptcy on his credit record. Discrimination in an employment setting is illegal under Federal Law.
the key phrase is “solely because”. the degree to which the employer can demonstrate (only if pressed to do so, there’s no positive requirement that they justify) their negative hiring decision is based on something else (so saying “crappy credit indicates reliability/trustworthiness issues” may be ok) makes the difference.
it’s a really, really fact-intensive inquiry.