Employment after bankruptcy

This topic contains 29 replies, has 12 voices, and was last updated by  NJCPA2B 5 years, 5 months ago.

Viewing 30 posts - 1 through 30 (of 30 total)
  • Author
    Posts
  • #270166

    financeguy
    Participant

    I haven’t had to look for a new job for a couple of years now, but a few years back when I was looking I did have to go through credit checks for some employers.

    n

    It is becoming more and more prevalent for employers to do credit checks, and yes, it could keep you from landing the job. I do a lot of research on economics and current events surrounding economics, and I see credit checks for employment happening more and more. However it is definitely on a company by company basis.

    n

    A couple reasons why they do it and it may keep you from landing the job:
    n1) If you are working in the financial industry and you yourself have bad credit, employers may think you are not so competent in your so called area of expertise
    n2) you may be distracted on the job due to constant money issues in your personal life
    n3) Lawsuit possibility – you make mistake for client, lawsuit filed, your credit report comes up and is used against company

    n

    Bottom line – it will keep you from landing some jobs, but not every jobn

    n

    #270167

    italianCPA
    Participant

    Also, if you work as CFO/Financial Controller/Director of Finance (with access to the company’s finances), they would not want anybody with money problems, for obvious reasons.n

    n

    #270168

    oceana
    Participant

    Thank you for your feedback. I understand the move towards background checks and cannot place blame on companies for wanting to hire the best of the best. My concern is that I won’t ever be able to overcome this negative mark on my credit and am wondering if I should pursue a different career entirely. I’m willing to accept the consequences of my actions but don’t want to waste valuable time spinning my wheels.n

    n

    #270169

    Bigmones
    Participant

    At both jobs they completed a credit check. I did the same for both the Staff Accountants I hired. I don’t think it should discourage you from getting your CPA though. Bankruptcy does not stay on forever. 7 years is along time, but having that CPA designation will do you well much longer than 7 years.

    n

    It might be on a company by company basis, but I hate to say it, most companies do it for accounting professionalsn

    n

    #270170

    financeguy
    Participant

    Keep in mind that in 2009 over 1.6 Million people filed for bankruptcy – the most on record I believe. In 2010 there has been over 100K filings per month, and March of this year the most ever filed for 1 month. Expect it to increase. I believe that we are going to reach a point where bankruptcy is not so badly looked upon because so many damn people have filed for it.

    n

    Some companies it will be a no exceptions. But others, if you got the qualifications, and come across good in the interview, that may overshadow the bad credit report.n

    n

    #270171

    Only 1 out of the 5 jobs I’ve had checked my credit.n

    n

    #270172

    SenoiaCPA2B
    Participant

    I was denied my “perfect job” in February because of some late payments on my credit from 7 years ago. They needed a perfectly clean 10-year credit history. I’m not saying you won’t ever get a job in the accounting industry with a bankruptcy, but you probably won’t get a higher lever job until it clears off. However, don’t let that stop you from getting your CPA now so that when your credit is clear, you will be ready to step in!n

    n

    #270173

    hsbc (the bank) runs credit checksn

    n

    #270174

    FARbehind
    Participant

    The last two times I had to look for a job was 2.5 years ago and 5.5 years ago. No one checked credit history but just references, past employment and background check. Both with reputable companies and I have been working in accounting/ external reporting field. And maybe situation now changed I am just giving you my history…n

    n

    #270175

    NJCPA2B
    Participant

    For recent bankruptcy, I think companies are having more flexibility due to the 2008 financial melt-down. I think this will be so for the next couple of years.

    n

    My firm just hired this older guy with 2 BKs in his credit……….I heard the reason was because his BKs were big, in the millions $$ and that he could bring-in alot of business and also he can help the firm’s client that are in potential BK trouble…….

    n

    I think what you do after a BK is most important, keep a clean record and pay your bills on time……

    n

    It is better to inform your potential employer about you credit report issues, before they find-out on their own……n

    n

    #270176

    jccjr
    Participant

    oceana,

    n

    how have you made out with the job search?

    n

    I filed ch 13 in 2009 and passed all of the CPA in 2010. I cant get hired for the life of me. Have been on 10 interviews, I see it on my credit report too where some have inquired after I authorized the background check.

    n

    Getting very discouraged, but it is my own doing. The economy turned me upside down in 2008 and I had no other choices except to protect myself from all the lawsuits and creditors I was facing.

    n

    Would like to hear an update about your search.n

    n

    #270177

    Fuzzy Lumpkins
    Participant

    I believe a bankruptcy would affect your ability to land a government job but I don’t think it would have that much of an impact in the private sectorn

    n

    #270178

    pshustler
    Participant

    I believe companies will be a little more understanding with the economy being in the state it is in. While the bankruptcy will be on your report, I would try and do little things in the mean time to get it back up. For example, get a couple of credit cards and pay them off monthly. This might seem small but every little bit helps improving your score over time.n

    n

    #270179

    NJCPA2B
    Participant

    jccjr- You should ask potential employers about their credit checking, what are they looking for? And depending on their answer you should bring up your bk with the person you will be working for. Ask him/her if bad credit will disqualify you…..

    n

    My brother was unemployed in NY for about 15 months and had 3 investment properties foreclosed upon and had high credit card balance, his Fico score was about 525. He got a job with a global advertising company as a Regional Controller and is making $148K. His boss weighed more his qualifications and experience (10years) for the position. My brother just filed for BK because the creditors were going to garnish his salary.

    n

    My point, bk is not the only factor. You may not have been the right candidate?

    n

    Also, there are plenty of CPAs that filed for bk last year. I personally know 3 who got hired in corporate America.

    n

    Maybe you should aim for a smaller private company or a small public company until you put the bk behind you.

    n

    You should find yourself a clever “credit repair” person or company. They can remove derogs and I have seen them also remove bks from a credit report…n

    n

    #270180

    oceana
    Participant

    I have a a bankruptcy that will remain on my credit record for three more years. Ironically, my talent and passion is in accounting and I am studying to sit for the CPA exam in 2011. I’m wondering whether anyone will hire me, either before or after the bankruptcy is removed. Will my past credit problems keep me from obtaining the career I desire?

    #158101

    oceana
    Participant

    I have a a bankruptcy that will remain on my credit record for three more years. Ironically, my talent and passion is in accounting and I am studying to sit for the CPA exam in 2011. I’m wondering whether anyone will hire me, either before or after the bankruptcy is removed. Will my past credit problems keep me from obtaining the career I desire?n

    n

    #270181

    financeguy
    Participant

    I haven’t had to look for a new job for a couple of years now, but a few years back when I was looking I did have to go through credit checks for some employers.

    It is becoming more and more prevalent for employers to do credit checks, and yes, it could keep you from landing the job. I do a lot of research on economics and current events surrounding economics, and I see credit checks for employment happening more and more. However it is definitely on a company by company basis.

    A couple reasons why they do it and it may keep you from landing the job:

    1) If you are working in the financial industry and you yourself have bad credit, employers may think you are not so competent in your so called area of expertise

    2) you may be distracted on the job due to constant money issues in your personal life

    3) Lawsuit possibility – you make mistake for client, lawsuit filed, your credit report comes up and is used against company

    Bottom line – it will keep you from landing some jobs, but not every job

    #270182

    italianCPA
    Participant

    Also, if you work as CFO/Financial Controller/Director of Finance (with access to the company’s finances), they would not want anybody with money problems, for obvious reasons.

    #270183

    oceana
    Participant

    Thank you for your feedback. I understand the move towards background checks and cannot place blame on companies for wanting to hire the best of the best. My concern is that I won’t ever be able to overcome this negative mark on my credit and am wondering if I should pursue a different career entirely. I’m willing to accept the consequences of my actions but don’t want to waste valuable time spinning my wheels.

    #270184

    Bigmones
    Participant

    At both jobs they completed a credit check. I did the same for both the Staff Accountants I hired. I don’t think it should discourage you from getting your CPA though. Bankruptcy does not stay on forever. 7 years is along time, but having that CPA designation will do you well much longer than 7 years.

    It might be on a company by company basis, but I hate to say it, most companies do it for accounting professionals

    #270185

    financeguy
    Participant

    Keep in mind that in 2009 over 1.6 Million people filed for bankruptcy – the most on record I believe. In 2010 there has been over 100K filings per month, and March of this year the most ever filed for 1 month. Expect it to increase. I believe that we are going to reach a point where bankruptcy is not so badly looked upon because so many damn people have filed for it.

    Some companies it will be a no exceptions. But others, if you got the qualifications, and come across good in the interview, that may overshadow the bad credit report.

    #270186

    Only 1 out of the 5 jobs I’ve had checked my credit.

    #270187

    SenoiaCPA2B
    Participant

    I was denied my “perfect job” in February because of some late payments on my credit from 7 years ago. They needed a perfectly clean 10-year credit history. I’m not saying you won’t ever get a job in the accounting industry with a bankruptcy, but you probably won’t get a higher lever job until it clears off. However, don’t let that stop you from getting your CPA now so that when your credit is clear, you will be ready to step in!

    #270188

    hsbc (the bank) runs credit checks

    #270189

    FARbehind
    Participant

    The last two times I had to look for a job was 2.5 years ago and 5.5 years ago. No one checked credit history but just references, past employment and background check. Both with reputable companies and I have been working in accounting/ external reporting field. And maybe situation now changed I am just giving you my history…

    #270190

    NJCPA2B
    Participant

    For recent bankruptcy, I think companies are having more flexibility due to the 2008 financial melt-down. I think this will be so for the next couple of years.

    My firm just hired this older guy with 2 BKs in his credit……….I heard the reason was because his BKs were big, in the millions $$ and that he could bring-in alot of business and also he can help the firm’s client that are in potential BK trouble…….

    I think what you do after a BK is most important, keep a clean record and pay your bills on time……

    It is better to inform your potential employer about you credit report issues, before they find-out on their own……

    #270191

    jccjr
    Participant

    oceana,

    how have you made out with the job search?

    I filed ch 13 in 2009 and passed all of the CPA in 2010. I cant get hired for the life of me. Have been on 10 interviews, I see it on my credit report too where some have inquired after I authorized the background check.

    Getting very discouraged, but it is my own doing. The economy turned me upside down in 2008 and I had no other choices except to protect myself from all the lawsuits and creditors I was facing.

    Would like to hear an update about your search.

    #270192

    Fuzzy Lumpkins
    Participant

    I believe a bankruptcy would affect your ability to land a government job but I don’t think it would have that much of an impact in the private sector

    #270193

    pshustler
    Participant

    I believe companies will be a little more understanding with the economy being in the state it is in. While the bankruptcy will be on your report, I would try and do little things in the mean time to get it back up. For example, get a couple of credit cards and pay them off monthly. This might seem small but every little bit helps improving your score over time.

    #270194

    NJCPA2B
    Participant

    jccjr- You should ask potential employers about their credit checking, what are they looking for? And depending on their answer you should bring up your bk with the person you will be working for. Ask him/her if bad credit will disqualify you…..

    My brother was unemployed in NY for about 15 months and had 3 investment properties foreclosed upon and had high credit card balance, his Fico score was about 525. He got a job with a global advertising company as a Regional Controller and is making $148K. His boss weighed more his qualifications and experience (10years) for the position. My brother just filed for BK because the creditors were going to garnish his salary.

    My point, bk is not the only factor. You may not have been the right candidate?

    Also, there are plenty of CPAs that filed for bk last year. I personally know 3 who got hired in corporate America.

    Maybe you should aim for a smaller private company or a small public company until you put the bk behind you.

    You should find yourself a clever “credit repair” person or company. They can remove derogs and I have seen them also remove bks from a credit report…

Viewing 30 posts - 1 through 30 (of 30 total)
Return to Front Page

You must be logged in to reply to this topic.