06-04-2009, 05:26 PM #1
How does credit affect employment
I have recently lost my real estate investing/general contracting business because the economy. I owned 10 properties and when the market started tanking I could only unload 3 of them before I was screwed and the remaining 7 were foreclosed on. Needless to say I'm very deep in debt (about 1.55 million). I am in the process of filing bankruptcy, however it will not be discharged by the time I get to the background investigation at the county I am a candidate in.
there are probably 10-15 judgements on my credit report due to the foreclosures and credit lines with my material suppliers that went bad because of the cash flow. I do not have any criminal charges, they are all civil cases. I did not lie anywhere on the application, however there were no questions regarding my financial situation. How will this affect me?
06-04-2009, 06:15 PM #2
- Join Date
- Jan 2009
50 / 50
Some look and some don't. The guess is, if you irresponsible about money then you might not be responsible in other areas in your life. I don't know of any supporting infpo on this tho.
If they don't ask about judgments / creditors / or ask for permission to check your credit history they prolly dont look at that as a deciding factor.
Bankruptcy is look at a way to make a LEGAL new start. There will be a suit (if there isn't already) when somebody gets turned down for a job because of it. If its a lawful thing to do, and must be down lawfully thru the courts, then how could bankruptcy be held against you?
06-04-2009, 06:34 PM #3
A lot of departments look and also check your credit report as well. This gives them a better perspective on the candicate, it they are a safe bet to hire or not. A bad report, they toss the application.
Bankruptcy is not the best move. It stay with you for a long time effecting everything.
06-04-2009, 10:50 PM #4
Also, when your credit score goes from 720 to 395, theres not much else that is going to make your credit score any lower. Actually, within a year of it being discharged, my credit score will be much higher than prior to filing because I will have $0 debt instead of $1,550,000 debt. I've seen it happen tons of times when I used to be a mortgage processor, pouring over credit reports for 8 hours a day.
i completely agree that it should be a last resort. for instance, I have a friend who said he wants to file now because he has $35,000 in credit card debt. Now $35k is a LOT more managable than $1.55 million. First off you can settle the debt for 17-20k and then you can pay that off, interest free (yes that is possible if you know what you're doing) over several years.
I was just curious if it was a "thanks very much but get the hell out" or if they will actually ask for the back story since it wasn't from irresponsibility. It was from a nationwide recession which has left hundreds of thousands of people in similar situations.
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