When faced with "have you ever filed bankruptcy?" (question you may be asked on various applications) when you have clearly passed the 10 year mark for public records, what do you say? I thought that the 10 year provision was the end of the "sentence" for filing BK?
Everyone I know says NO unless it's for a security clearance or an occupational license. Even for stockbrokers now they only ask if you've filed in the last 10 years.
If you choose to answer the question, you must (legally) answer yes if you have ever filed bk. There is a reason why the question is worded the way it is. However the easier path is simply to skip the question. The reviewer will assume "no", especially if it doesnt show up on your credit. This gives you the best of both worlds, you didnt lie yet the creditor gives you the benefit of the doubt.
Also SOME people have been DENIED BK...they filed...but it was DENIED...so the BK never took place...
When you file for bankruptcy the bk shows up on your credit reports. Filing for bankruptcy does not guarantee you will be granted a discharge and relief from your debts. If for any reason your bk is not discharged you still suffer from having your bk on your credit report. Bankrupcty is a long process, taking 3 - 5 months for a Ch. 7 and 3 - 5 YEARS for a Ch. 13. A trustee is in charge of your case and if he believes you have not been honest he can dismiss your case. You will still owe your debts and the bk will be on your credit reports. A person can also request that the bk be dismissed, maybe if you won the lottery? The amount of money you earn does not play a role in bankruptcy, it is the amount of money you earn each month vs the amount of money you must pay each month for your debts and living expenses. This also determines whether you qualify for a Ch. 7 or Ch. 13 bk. Hope that helped.
The question (on the applications) is not "Have you ever had your debt(s) discharged under U.S. Bankruptcy Laws?", it's "Have you ever FILED for bankruptcy?" or "In the past X years, have you FILED for banktruptcy?". If it's for a CC or a loan, and it's not on your CR's, then I wouldn't suggest that you say "Yes, I filed 14 years ago". Duh. However, if you're building a house and you say "No", then 7 months later when the house is done (and you'r under contract/obligation to buy it) and the bank find out, they CAN pull your funding and then you're left holding the bag -- and possibly owning a builder some $$ for not following through on the purchase. But if it's for a job, security clearance, etc., and it doesn't specifically state a time period (e.g., 10 years, 7 years, etc.), then that would be an iffy situation.
I had a friend tell me of a case where the bk-7 was turned down. The couple met with the trustee and the trustee asked a series of questions, turns out that the wife had a huge gambling habit and the couple had at least three luxury cars. Really don't know if a gambling habit is grounds for a turn down. Best regards, Mirage
Of the refusals/dismissals I've heard about, it's usually because the person failed to disclose income, property, cash or other items of value.
To answer the original poster's question: You should not answer "no". If you are negotiating a contract for purchase, you've committed fraud and it can be negated. If you're applying for employment, you have lied and you subject yourself to summary dismissal with no unemployment coverage whenever the company discovers the truth. Your best bet is to leave it blank, along with any other question on the application of questionable legality. Certainly never volunteer anything more than they ask in this regard. If they say "have you filed BK in the last 7 years" don't say "no, but I filed 10 years ago, is that a problem". If someone asks this in an interview, don't answer it directly, simply make a positive statement about your current financial health. In researching this myself, I found that there is considerable difference of opinion regarding the legality of this question. This is because the BK code states that a private employer is not permitted to discriminate in hiring solely because of a BK filing. The problem is the "solely because of" part. The result is that the "legality" of this question probably depends on what part of the country you live in and what the local judges have ruled, and as a result, you are less likely to see this from a national or international employer (since they have to protect themselves everywhere) than from a local employer.
Re: Re: "Have you ever filed Bankruptcy?".. Case in point, I have a chapter 13 on my reports. We filed and the case was dismissed before the plan was even approved, due to not showing at the creditor's meeting. If I would have had any sense I would have withdrawn it instead of letting it be dismissed, but what did I know...
Re: Re: "Have you ever filed Bankruptcy?".. Even though it only shows on your credit report for 10 years, there is a "full report" that can be obtained in certain circumstances. I don't know the exact dollar limits, but it's a loan over a certain amount of money or a salary over a certain amount. In that case, they can go back more than 10 years, so if you lie you may be discovered, and it could cost you the job or the loan. Better to own up and then let them know how much you've improved and what lessons you learned.
Re: Re: "Have you ever filed Bankruptcy?".. I'm with Hedwig on credit applications. However, I would skip the question on something like an employment application and let the chips fall where they may. If the prospective employer came back and insisted on an answer, I'd tell the truth. If the employer wanted to get ugly about it, screw 'em, I'm better off without their attitude. If this was a question on something legal, like a jury duty summons for instance, I'd tell the truth without hesitation. The missing numbers, from FCRA 605(b), are employment over $75,000 a year and credit transactions with principle amount or insurance w/ face value over $150,000. I wish they'd update these figures again. They're drafting FACTA now, would be convenient to slip it in (AND index it to inflation !).
Re: Re: Re: "Have you ever filed Bankruptcy?".. It's an employment inquiry for a position over $75K per year -- at least, that's what the FCRA SAYS can happen. And regarding all this nonsense about "full report", "extra information" available AFTER the time periods mandated by the federal laws, yada yada yada -- I don't know why some people talk like there's a "secret" cache of data or an "extended" credit report -- but there is NOT! The CRA's are only allowed to retain the information by law, and they are only allowed to provide it (to those requesting your history) according to the letter of the law. There is no "secret" or "extended" report, ready to be purchased from EQ/TU/EX by the company in black suits and dark shades. Sometimes, people get confused when, for example, they're applying for a job or a clearance or something, and a third party does a comprehensive background investigation on them and this "old" stuff turns up. But the thing to remember here is that this "old" information didn't come from the CRA's -- it came from OTHER sources that were at the disposal of the background investigating company. The FCRA doesn't cover these guys wanting to contact the court and look up old BK's, liens or a 14 year old judgment that your old landlord got against you. It's a different situation that typical FCRA covered credit reporting.
Re: Re: Re: "Have you ever filed Bankruptcy?".. oh wow, This just isn't accurate, the information referred to is information that would have been obselete and fallen off of your regular report under the 7 year reporting provision. It isn't information that was deleted in response to a dispute, it's obsolete information. AND, it is whatever other information that is uncovered as part of an investigation. If you read the definition of consumer report, you should be shocked and disgusted as to all that CAN be reported. If it is reported, the FCRA applies, 3rd party investigator or not. Sassy
Re: Re: Re: Re: "Have you ever filed Bankruptcy?".. Duuuuh...drool..Is there an echo in here ? LOL ! You're full of crap ! Talk to fla-tan and a few other people in the RE industry. No one said anything about a "secret" credit report.
