Monday, November 19, 2012

How Can Bankruptcy Affect Job Opportunities?

If you have declared bankruptcy before, or are considering doing this in the immediate future, you might be wondering: Can an employer pick not to hire me based on a bankruptcy filing? That is a big no since these employers don't have to worry about any bankruptcy for they have a lot of options. From pre pack insolvency to liquidation and administration. While you should certainly be sure you get in touch with an attorney before filing Chapter 7 or even chapter 13 bankruptcy, here's a brief overview:

Based on the Bankruptcy Act and Fair Credit Reporting Act, its illegal for any employer not to hire you depending on a past bankruptcy. But many companies do pull a credit report in the later stages of the hiring process, and may utilize the information found there as part of their final decision. This is especially likely if you are applying for a job that can affect the company financially. While a bankruptcy alone is unlikely to prevent you from getting a job, poor credit preceding bankruptcy may be utilized as a determining factor that sets another candidate a little bit ahead of you and helps the hiring company make a final decision to go with someone else.

How Can I Avoid This?

♣ Honesty is the best policy: Before a firm can pull your credit report, they need your authorization. When presented with the waiver, ask the specifics on the background check. Will a credit report be included? If so, you should mention what a prospective employer is likely to find there - late payments, past bankruptcy filing, etc .

♣ Go on the offensive: Give your potential employer a short explanation of your bankruptcy circumstance. Explain the extenuating circumstances that brought you to bankruptcy (illness, loss of employment due to current economic conditions, divorce, , etc . ) and what you have done to rectify the situation since. You do not really need to go into great detail, just approve the bankruptcy and leave the employer knowing that you take it seriously and are on the right track once again.

♣ Redirect: If appropriate, follow up the explanation of your bankruptcy with an example of how you learned from it and how that lesson can assist you in the potential job. Or, redirect the conversation to one of your many strengths that make you a perfect candidate for your position.

♣ Concentrate on the positive: If you have reached the credit reporting stage of the interview, you are more than likely being seriously considered for the position. Remind your prospective employer why you are a great fit for that open position, regardless of your personal credit history.

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