Thread: bad credit vs. bankruptcy re employment?

I am currently job hunting in the accounting and finance field. Not great fields to be in with bad credit.

My credit went downhill in 2003 when I began working for myself part time in order to care for my mother. I didn't do too well when it came to bringing in my own clients. I'm no salesperson, that's for sure. I now have several accounts which were written off in 2004, all in collections to the tune of approx. $30,000.

I now have the opportunity to turn my life around and really devote time to trying to straighten all this out, negotiate payment programs, etc. however I also must quickly get back into my career. So assuming I don't have the time to get this cleaned up before seeking employment in my fields (I'll try to stick with temp jobs for a few months which won't check credit), what would hurt me worse when job hunting--a bankruptcy or my bad credit with all the credit history spelled out?

Obviously neither is a good sign for an accountant or financial analyst but again, personal and family problems took precedence at the time. I'm more than willing to begin paying on all my accounts once again if I could actually find a decent job in my field. I'm well qualified and have good experience but I'm afraid these impending credit checks are going to kill almost any shot I may have with a decent position.

Anyone have any experience with this or any suggestions? I'm beginning to think bankruptcy may be better since I won't appear to be under any type of temptations that may lead to anything illegal on my part (though that certainly would never be the case but how do they know that??).

I really want to get my career going once again in order to get back on good financial ground and get my own life going once again but it seems to be a catch 22 I'm in here.....no job, no fixing my credit--no fixing my credit, no job (or at least no decent one in my field).

And is there by chance some salary cut-off at which they begin checking credit or do they check credit at all salary levels in financial/accounting fields?

I hope someone has some ideas about this..I'm dying to get my career going again now that my life is once again mine to manage. Thanks for any help or suggestions!

Anyone have any experience with this or any suggestions? I'm beginning to think bankruptcy may be better since I won't appear to be under any type of temptations that may lead to anything illegal on my part (though that certainly would never be the case but how do they know that??).

BK would not eliminate you as a suspect b/c they know you cannot buy anything on credit while in BK and for a little while post BK, thus you will need the cash to get whatever it is you want to purchase. They might consider that your motivation for theft.

And is there by chance some salary cut-off at which they begin checking credit or do they check credit at all salary levels in financial/accounting fields?

From my experience, when looking online for a position, they state in the ad if they have credit requirements for the applicant. If not, just call the HR dept for the company you want to apply with before you schedule an interview.

Obviously neither is a good sign for an accountant or financial analyst but again, personal and family problems took precedence at the time. I'm more than willing to begin paying on all my accounts once again if I could actually find a decent job in my field. I'm well qualified and have good experience but I'm afraid these impending credit checks are going to kill almost any shot I may have with a decent position.

Larger companies have lots of qualified applicants to choose from, that they have no reason to consider your side of the story. Shoot for smaller companies, who may be more symphatetic to your situation, and will deal with companies on a case by case basis. I have hired unqualified people simply b/c there were a lack of responses to my company's ads, even though I knew it was unlikely the person would not work out, just needed a warm body until they wrote their own pink slip. I am not saying you are just a warm body; I am simply letting you know that there are some very unseen advantages to applying for work with a small company :-)

Instead of going for a Controllership position (which certainly would require a full Financial background check) why not start out as an A/R or Payroll Clerk where a Financial Background check is less likely since you don't handle company funds? A/P clerk would not work since the ability to set yourself up as a vendor exists.

If that is not feasible, check with some smaller companies for F/C Bookkeeper positions - they often don't do extensive background checks.

Originally Posted by Lulu74

I am currently job hunting in the accounting and finance field. Not great fields to be in with bad credit.

My credit went downhill in 2003 when I began working for myself part time in order to care for my mother. I didn't do too well when it came to bringing in my own clients. I'm no salesperson, that's for sure. I now have several accounts which were written off in 2004, all in collections to the tune of approx. $30,000.

I now have the opportunity to turn my life around and really devote time to trying to straighten all this out, negotiate payment programs, etc. however I also must quickly get back into my career. So assuming I don't have the time to get this cleaned up before seeking employment in my fields (I'll try to stick with temp jobs for a few months which won't check credit), what would hurt me worse when job hunting--a bankruptcy or my bad credit with all the credit history spelled out?

Obviously neither is a good sign for an accountant or financial analyst but again, personal and family problems took precedence at the time. I'm more than willing to begin paying on all my accounts once again if I could actually find a decent job in my field. I'm well qualified and have good experience but I'm afraid these impending credit checks are going to kill almost any shot I may have with a decent position.

Anyone have any experience with this or any suggestions? I'm beginning to think bankruptcy may be better since I won't appear to be under any type of temptations that may lead to anything illegal on my part (though that certainly would never be the case but how do they know that??).

I really want to get my career going once again in order to get back on good financial ground and get my own life going once again but it seems to be a catch 22 I'm in here.....no job, no fixing my credit--no fixing my credit, no job (or at least no decent one in my field).

And is there by chance some salary cut-off at which they begin checking credit or do they check credit at all salary levels in financial/accounting fields?

I hope someone has some ideas about this..I'm dying to get my career going again now that my life is once again mine to manage. Thanks for any help or suggestions!

It will depend upon whether you handle actual funds or not (or have the access to funds movements). Obviously stay away from banks which have strict guidelines about CRs and hiring policies.

Your best bet is to be upfront when interviewing. Most companies require an "application" to be completed for this reason, and read the fine print to see if it authorizes a credit check.

Per my experience, most companies do not actually do the credit check. Even in the financial fields. Banks and depository institutions are different, but for a straight accounting job, I wouldn't worry about it until you cross the need to have your CR pulled. Again, be upfront about the situation, causes and corrective actions you are taking. You can turn this into a selling point for you.

I filed bankruptcy while I was an officer in the Air Force. That was DEFINITELY frowned upon for all sorts of reasons. Nevertheless, during a promotion board, they asked if there was anything in my background that might reflect negatively against me (what a loaded question). I came clean about the BK and said that I wasn't proud of doing it nor how I got into such a position in the first place however, while regrettable, it seemed like the best (and most difficult) decision I could make for my family at the time and that I had used the experience as a wake-up call to improve my financial management habits.

They promoted me to Major ahead of my peers.

It's not the end of the world.

IMO, it would be better to have your debts wiped clean and show that you're moving on, instead of having some opressive liability that might encourage you to make a few unauthorized withdrawls.

Originally Posted by bizwiz41

Again, be upfront about the situation, causes and corrective actions you are taking. You can turn this into a selling point for you.

I definitely agree with bizwiz.

I have applied for numerous government positions, usually no response, but did get an interview with social security, but then was notified that they were under a 'hiring freeze' and didn't get the position. Could the BK as well as bad credit rating and IRS debt be factors here? The position was in customer service. Should I avoid even making applications with government agencies altogether? There was also fingerprinting done and there was an expunged misdemeanor in 1978. Any responses would be very helpful. Thank you!

Originally Posted by Marydjw

I have applied for numerous government positions, usually no response, but did get an interview with social security, but then was notified that they were under a 'hiring freeze' and didn't get the position. Could the BK as well as bad credit rating and IRS debt be factors here? The position was in customer service. Should I avoid even making applications with government agencies altogether? There was also fingerprinting done and there was an expunged misdemeanor in 1978. Any responses would be very helpful. Thank you!

Bad credit No IRS Depends on the job How much do you owe the IRS and how long have you owed it?

Originally Posted by Marydjw
I have applied for numerous government positions, usually no response, but did get an interview with social security, but then was notified that they were under a 'hiring freeze' and didn't get the position. Could the BK as well as bad credit rating and IRS debt be factors here? The position was in customer service. Should I avoid even making applications with government agencies altogether? There was also fingerprinting done and there was an expunged misdemeanor in 1978. Any responses would be very helpful. Thank you!

When applying for many government jobs, teaching, health care, even volunteer work as a coach, it does not help if you have expunged your criminal record. You must reveal the conviction, by law, if the original crime falls within certain categories, such as drugs, sex offender, violence, perjury, lying to a government agent. If you do not reveal the original crime, then you have committed another crime. So it it best to answer the questions on your government application just as if you had not received an expungement. Then you should be prepared with an honest explanation, verbally and in writing, that puts you in the best light.

I applied for a private sector job, signed authorization for a background check, and I was shocked at everything they researched on me. They looked as criminal and civil records, which went far beyond a credit check.

a bankruptcy is definately worse. why don't you just apply and explain how you got into this position during interview? am sure they'd understand. After all, they're after your skills not your credit rating..
Good luck!