Can BK7 Hurt Job Chances?

Discussion in 'Credit Talk' started by lena, Sep 21, 2003.

  1. lena

    lena Well-Known Member

    Hi all,

    I have a friend who is considering filing for bankruptcy. The only problem is he is about a year away from earning an accounting degree, and he plans to take the CPA exam afterwards. Does anyone know if a bankruptcy can prevent him from becoming certified? Will it lower his chances of getting a job?

    Thanks in advance for any responses!!
  2. DanS

    DanS Well-Known Member

    A BK is not supposed to hurt your current job. I would think in the financial world, credit history and/or public records - criminal and civil - would be important at higher levels. Starting off, there may not be that much responsibility and the reference checks may be more relaxed, or open to an explanation. "I bet $100k on Sunup to show" would be an example of an explanation that might not be acceptable.

    I would like to think that getting certified would have nothing to do w/a BK, but what the hell do I know - do I look[\b] like an accountant?

    It's possible that if their goal is to be a CFO/CEO, this will come up, even twenty years from now.

    Probably best to get the real scoop from people in this line of work. I'll shuttup now.
  3. Brad J

    Brad J Well-Known Member

    No not really, but you will be asked to consent to a credit check, and you will be asked about the BK. Depending on your circumstances and how you've conducted your finances since then, you should be OK.
  4. Mike2

    Mike2 Well-Known Member

    Boy, it certainly can't help. I'd say that if there's any way your friend can avoid the big BK, they should. CPA firms are going to be touchy about it I believe. I'm in banking, and I know for a fact it hurts candidates in my field.
  5. lena

    lena Well-Known Member

    Thanks to everyone who responded. I've done some more digging, and it looks as if he won't be denied certification for filing, but getting hired might be another story.
  6. iambroke

    iambroke Well-Known Member

    I was in banking for years 1986-96. Filed Chp 7 in late 1991, discharged in early 1992. Applied for a clerical job at Barnett Bank (now BofA) in 1993 and they pulled my credit BUT I let them know I had a chp7 on there and they said that they would have to look at the whole picture first. Being honest with them before they pulled my credit must have gave me some brownie points cause I got the job and worked with them for 3 yrs before going to medical school and now working in medical claims.

    My best advice for your friend is for him to be upfront and honest and to try everything BUT bankruptcy before filing it. Have him go to CCCS for advice see if there is anything that can be done before he files. At least he can get free budgeting advice without signing up to use them. Bankruptcy is only going to hurt him for many many years. I know, I've been there and done that and wish I would have done it differently. Sometimes there are other ways. Other times there aren't. It just depends upon the situation. Plus being a CPA eventually clients are going to want a person who can handle their own finances.
  7. chrisb

    chrisb Well-Known Member

    My advice would depend on the answer to a simple question. Your friend is considerng filing for bankruptcy. How long has he / she been delinquant to get to this point? How many years is the SOL in your friend's state?

    My point is this (and I know some on this board will bash me for this) if your friend has gone delinquant 2 years or so, then the baddies will be on there for another 5 years, they should keep themselves aware through the end of the SOL in their state and be prepaired to counter any lawsuits that may come in on delinquant accounts through the end of the SOL. Assuming that they don't have any judgements against them, or lawsuits impending, possibly a good tactic for your friend would be to just live sub subprime for 5 years to let it drop (actually live through the end of the SOL then dispute and try and get it clean anyway)

    The damages of the BK staying 7 or 10 years on a report, as well as possible future questions on the BK even after it's fallen off possibly rearing up it's ugly head might be worse than living with it.

    Now if your friend has just started to go delinquant and has ammassed much more debt than he / she can repay given the current situation, then CCCS might be a better idea. Yes CCCS is bad, because you pay on it for 3-4 years, then once everything has been paid off, it starts it's 7 year clock. But then BK can stay for 10 years, and is perminantly recorded and can be brought up when your friend runs for governer of Texas 20 years from now. hehe

    And finally, if your friend really can't afford to pay the CCCS and just wants to be rid of it BK might be the option.

    I think a BK is about as bad of a baddie as you can have, but some on this board have been able to get a mortgage 2-3 years after discharge with pretty good rates so it might be the best solution.

    I would agree with the above posters thou, that your friend should examine all possible options before filing.


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