To answer the original question, yes, most employers do perform credit and background checks. For most positions, it's a non-issue if a bankruptcy is on your records.

In bankruptcy proceedings, at least Chapter 7, the applicant must reaffirm their student loans - they cannot be discharged per Federal Law. Additionally, if the applicant has a car loan/lease payment, those can be reaffirmed too (a smart way to rebuild credit).

Despite what some have posted here, there are times when it's the only alternative. Bankruptcy was designed to allow people a fresh start when they have large medical bills, going through a divorce, loss of employment, or any other loss/reduction of income. It was NOT designed for people who spend frivolously and then opt for bankruptcy to avoid paying the debt.

Think about it this way - what happens if you face major surgery that costs upward of $100,000 and your insurance plan only covers 80%? You'd still be on the hook for $20,000 plus whatever else the insurance didn't cover. My dad had life-threatening brain surgery (at age 73) and the bills amounted to over $200,000. Fortunately, he has excellent health coverage.

My point is not everyone is in the same financial well-being or condition. Sometimes bankruptcy is a necessary evil and I'd venture to guess that for the majority of people who go through that experience, it's one they will never go through again. Additionally, it's a decision that is not taken lightly or made quickly. There is a lot of angst associated with making such a life-impacting decision.

I speak from first-hand experience.

On a personal note...

If the company won't hire you due to a bankruptcy, which they cannot admit, ask yourself if you would really want to work for that company anyway. We all make mistakes in life and experience rough patches. I find it highly hypocritical that corporations can claim bankruptcy but won't hire people who've filed for personal bankruptcy. Airlines are an excellent example. We won't hire Johnny Pilot because of his BK but it's okay for our airline to file BK.

 

I'm sorry but bankruptcy is not a good thing no matter how you slice it and it does hurt your credit. If you want to live off what you make then put the plastic creditcard down. It isn't the fact that people only make $20k that only hurts. It's the fact that you're then burning 22% ontop of whatever you purchase. When times get tight but the cards up. If you dont' ahve cash in hand then forget about it.

Like all things in life there are those that didn't make those mistakes and if they are applying for the same job then why not take them? A young pilot at age 18 gets a DWI. He never touches a drink again. Do you think he'd be hired over me 8yrs later at an airline with somewhat close resumes if I never had a DWI to start with?

 

You missed my point. I never said BK wouldn't hurt one's credit. Nor was I discussing credit card abuse.

What I WAS discussing were situations that can happen to any of us. Again, for example - you lose your $50,000/year flying job for whatever reason (for discussion, we'll presume it was an airline pilot job). Then your wife (or you) undergoes major surgery and her insurance, since you lost your job, isn't the best and now you're facing large medical bills. Say you have two kids, mortgage, and car payments. What would a person in this situation do? They've already exhausted other avenues to resolve the problem, the pilot can't find a job, and the bills are piling up. They're one step away from foreclosure on their house (which is as ruinous on credit history as bankruptcy).

Don't you think that, due to unforseen circumstances, they should receive a chance for a fresh start? Do you think they should lose their house?

Be very careful with this one - you don't know what the future holds. EVERYONE makes mistakes - some are very minor, others quite large. You could make a mistake in the future too.

Again, the point was missed. My personal note was strictly related to bankruptcy and how some companies hold that against applicants. I was not discussing anything else and, to me, no comparison can be made between a DUI and a bankruptcy for legitimate reasons.

Be compassionate towards others because someday you might be in the position to be asking for compassion yourself.

 

I didn't miss your point. I understood what you were saying. However I was pushing the point that circumstance doesn't always matter. You're very right that I or anyone else could get into trouble. But places have the play the odds. Overall it's probably safer to hire someone with good credit over bad credit. While not everyone has a valid reason, they would risk having that person in the cockpit.

I know how bad it can hit. My score was dropped 120points because of two unpaid items that totalled less than $200. however they had been paid so it was removed.

 

Whats more scary than checking your credit is that employeers now (not sure if they do this at the airlines yet) search your name on the internet in places like MySpace, or other websites. There are companies emerging which you can pay to remove this stuff from the web, or atleast make it alot harder to find.

 

A book for everyone....The Millionaire Next Door. Explains how people that make a lot of money don't have a problem declaring bankruptcy and getting more loans. they have 20000 a month coming in as a doc, pilot, whatever, and banks are glad to loan them money...sad cycle in America right now. Most states they keep their house and a vehicle.

 

Shadow Flight

Sorry to hear of your travails...but I feel like you've made this a health insurance argument.

I'm self employed (we'll see how long that lasts). I carry "individual" insurance for my family. Starting in January, it will cost almost $1,000/month for my family of five (myself, spouse, children 15, 13, and 11). The way taxex work, I pay for the insurance personally and being self employed, I'm in roughly a 50% tax bracket. This means I have to "make" $25,000 a year to just pay for medical insurance. I'm not currently carrying disability, I carry general liability, etc. But the health is just astronomical. It is a good policy, but it does have certain "gaps". So I could conceivably get schwacked somewhere.

Health insurance is a huge cost issue for any employer.

However, personal debt is a huge issue for the country at large. It will come back to haunt us in the next 5-10 years.

 

You should be able to tax write a lot of that off. Vegabond could offer more insight. And 50% as self employed seems a little harsh. Where do you live?

 

I still have to make the money to pay for it before I write it off- the almost
"50%" bracket comes from having to pay my own Social Security and Medicare taxes.

 

Hmmm you must be in a state with high state income tax. In Texas I have to pay roughly 15%