Background/Credit Check, Bankruptcy

Nurses General Nursing

Published

As I type this, a colleague of mine is filling out an application for a position at another facility. The background check states that it checks EVERYTHING (pretty personal!) including bankruptcy, which she declared a couple of years ago.

She was wondering if she needs to worry about not getting this job because of the bankruptcy? How much does credit play into whether or not someone lands a job? It seems like it shouldn't make any difference.

Thanks for any input. Unfortunately I don't have much help to offer her.

Specializes in A myriad of specialties.
.... credit check is going too far. This woman's bankruptcy doesn't affect her nursing abilities.

Has anyone here ever been denied a position based on bad credit?

Guess I've been naive! I agree wholeheartedly that a credit check is way TOO intrusive! :nono: I, for one, have never been denied a position based on bad credit (at least as far as I know!) One's financial history is no employer's business!

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I managed a credit reporting and collection agency for 15 years. Bankruptcy reports on your file for 10 years from the date of discharge and is expunged automatically. Credit information is reported electronically from your creditors and most files are never touched by human hands unless something is disputed and investigated. It is possible for your creditor to report wrong information, but it will be up to you to dispute and have the error investigated and corrected.

Contrary to popular belief, creditors can call you at work. It's not illegal. If you do not want to be called at work, you will have to submit your request in writing in order for it to become illegal. Once you submit your request to not be called at work and they then call you, it is illegal and the creditor is in violation of the Fair Debt Collection Practices Act. You can also request that they not call you at home, but don't be surprised if the next contact you have from them is a sheriff at your door serving a judgment against you.

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Specializes in ORTHOPAEDICS-CERTIFIED SINCE 89.

From what I gathered from human resources is that as long as your job has nothing to do with handling money there is not much of a problem. In fact they had provision that you could borrow against the next paycheck.

Now if you were in the billing office or the checkout office it would be a different matter all together. Money changing hands is a no no.

Having a lot of credit cards is NOT a good thing. It's not how much you owe on each, it's the potential of having that much AVAILABLE. So, say you have 8 visa/discover etc and each has a limit of $2500, even if you never use them it is a danger signal to credit checkers.

Also when you do the equifax thingy make sure there are no open accounts!

They still had a Sears account from 1965 on ours. We bought and paid off a black and white tv for $119 and the account was still open!

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One's financial history is no employer's business!

Sure it is. It speaks to character.

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Sure it is. It speaks to character.

Yes and no. I grew up surrounded by wealthy folk, and I know PLENTY of millionaires with questionable character. And I also have met plenty of people with nothing that I hold in high regard.

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Specializes in Acute Care Psych, DNP Student.
Sure it is. It speaks to character.

I think sometimes yes, sometimes, no. Sure there are those who charge up credit cards with no intention of paying them off. There are those who are into immediate gratification and spend spend spend without regard for financial responsibility. Then there are those who are basically financially responsible, but experience illness, job loss, medical bills and various calamities to the extent that they cannot dig themselves out. I think bankruptcy is a humane option for the latter, and their credit does not speak to their character.

In a perfect world people would only use credit to purchase a home, not even a car. This is what I do. But it's not a perfect world, and I wouldn't judge someone's character based upon their credit without understanding their reasons for bad credit. I also know someone with perfect credit who is so crafty and sneaky...he'll hoodwink and swindle you. But he's got perfect credit. On the flip side, I know a couple of people with horrible credit who just don't get it - financial responsibility - and just don't care. I think it is a valid concern regarding their character because it shows a sort of passive stealing on their part.

So like everything else, I think it's complicated!

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Yes and no. I grew up surrounded by wealthy folk, and I know PLENTY of millionaires with questionable character. And I also have met plenty of people with nothing that I hold in high regard.

Rich people declare bankruptcy every day. Look at Trump. He may be rich, but he has lousy character.

Then there are those who are basically financially responsible, but experience illness, job loss, medical bills and various calamities to the extent that they cannot dig themselves out. I think bankruptcy is a humane option for the latter, and their credit does not speak to their character.

In very rare cases there are those who legitimately need to avail themselves of the bankruptcy laws. Most of the time it's because they don't want to pay up. Even for medical. Yeah, it may leave you broke for a long, long time. And?

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Rich people declare bankruptcy every day. Look at Trump. He may be rich, but he has lousy character.

In very rare cases there are those who legitimately need to avail themselves of the bankruptcy laws. Most of the time it's because they don't want to pay up. Even for medical. Yeah, it may leave you broke for a long, long time. And?

And therefore, I do not think credit status speaks to character. JMHO, sorry if you disagree.

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Specializes in med/surg/tele/neuro/rehab/corrections.
From what I gathered from human resources is that as long as your job has nothing to do with handling money there is not much of a problem. In fact they had provision that you could borrow against the next paycheck.

Now if you were in the billing office or the checkout office it would be a different matter all together. Money changing hands is a no no.

Having a lot of credit cards is NOT a good thing. It's not how much you owe on each, it's the potential of having that much AVAILABLE. So, say you have 8 visa/discover etc and each has a limit of $2500, even if you never use them it is a danger signal to credit checkers.

Also when you do the equifax thingy make sure there are no open accounts!

They still had a Sears account from 1965 on ours. We bought and paid off a black and white tv for $119 and the account was still open!

Actually I heard from Suzy Orman on tv that if you have a lot of credit cards without debt that that is ok. She said that you have a lot you can borrow or buy with and you don't then that means you are responsible and the companies like that.

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If somebody had borrowed a lot of money from you, and they didn't pay you back as promised ...

And then they asked you for a job, would you want to hire them? Probably not ... especially if it was your money that was lost. You probably wouldn't trust that person with anything again ... job or otherwise.

Yeah ... there are special circumstances like medical bills, but there's just as many freeloaders who don't want to pay their bills.

I don't have a problem with credit checks as a condition of employment. And I really don't blame employers who don't want to hire people with bad credit.

:typing

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Employers can refuse to hire you because of bad credit but not bankruptcy. Under the Bankruptcy Act it is illegal for non-governmental employers to discriminate on the basis of bankruptcy.

http://assembler.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000525----000-.html

The credit check most employers run, unless you are handing finances/money, is basically looking for indicators that you are in desperate need of money. With those who have access to drugs, they are looking to see if you are in such a bad situation that you might steal the drugs and sell them to raise money. You can have good credit but be 100,000 in debt (not student loans) and apply for a $20/hr job. If you have no additional resources, i.e, a sugar Daddy or rich hubby, you could be considered a risk. Even with a good credit score. I used to be an accountant and also worked in HR. I have seen plenty of bad credit but never denied anyone a job because of it. Employers are not creditor police. They are trying to protect their assests.

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Ridiculous. My late parents were initially denied an application to open a checking account at a local bank, when their credit history revealed they had been through two bankruptcies. My mother appealed, and when they found out that they had been due to medical bills, they overturned the denial and approved their application. You should have been able to do the same. Being

irresponsible with your finances is ONE thing...but being sick and uninsured is another. :madface:

P.S.: One of my mother's doctors froze her assets..including a $28,000 profit sharing check she had just received, not even giving her an opportunity to discuss a payment plan. My sister went to his office and cussed him out. "I hope you sleep well," she

added, before storming out of his office.

That....bastard (excuse my French).

I am not sure how long ago that was but luckily they can't do that now. You must have a chance to appear in court and a court order has to be issued to feeze assets. Except maybe for Mr. Taxman and other government people. Not sure about them.

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