Bankruptcy and Jobs

applewhitern, BSN, RN · Sep 11, 2011

Most employers do a credit check on potential employees. I know plenty of nurses who have terrible credit or have filed bankruptcy, and they got a job anyway. I have been told the credit check is simply part of your criminal background check. By the time you actually graduate and take NCLEX, some time will have passed, and you will have a "clean slate" on your credit anyway. I know you may not be able to borrow money for a while, but I doubt it will prevent your getting employment as a nurse. The criminal check bears much more weight. Good luck.

RNinthemaking1986 · Sep 11, 2011

Hey hun don't stress over it, I know because I'm in the same boat. My husband is the only one that works and provides for the family. I had to quit my job after my son's premature birth and that lead to so much unpaid credit card bills. We are also in the process of filing bankruptcy as well . Its stressful, but this the only option I see for us. . We live on just my husbands income, and cannot manage pay for all the necessities (rent, food, utilities etc) and credit card bills.

According to my Bankruptcy lawyer, a potential employer has to inform you on the credit check as well as background check. If the employer says they are going to do a background check that should NOT include credit check. Its a violation, if they tell you they will check "background" and then in disguise check your credit.

While filling out a work application, in the fine lines, it must state what type of check they are performing (if its background check, credit check, or both)..

Don't worry, and don't stress about it..concentrate on nursing school. Good luck

mama2twins · Sep 11, 2011

I made an account to reply to you. :)

My hubby and I filed BK 18 months ago. We were swimming in credit card debt. During the process, I was TERRIFIED, but now, I can not tell you how liberated the entire process has been. No more calls, no more harrassing, no more worry.

I have applied for two jobs since and gotten them both. Usually, the only time an employer is really concerned if you filed is when you deal with money (or manage your patient's money...)

And as far as your credit, mine only dropped 100 points and it is all ready back up 50. I just bought a car with 2% interest. I get AT LEAST 20 credit card offers in the mail a week. And I qualify for a mortgage.

SO, don't sweat it. I promise, it will be the fresh start you need.

nursejoed · Sep 11, 2011

"By the time you actually graduate and take NCLEX, some time will have passed, and you will have a "clean slate" on your credit anyway."

I believe the bankruptcy discharge shows up for seven years on your credit report.

madwife2002, BSN, RN · Sep 11, 2011

I made an account to reply to you. :)
My hubby and I filed BK 18 months ago. We were swimming in credit card debt. During the process, I was TERRIFIED, but now, I can not tell you how liberated the entire process has been. No more calls, no more harrassing, no more worry.
I have applied for two jobs since and gotten them both. Usually, the only time an employer is really concerned if you filed is when you deal with money (or manage your patient's money...)
And as far as your credit, mine only dropped 100 points and it is all ready back up 50. I just bought a car with 2% interest. I get AT LEAST 20 credit card offers in the mail a week. And I qualify for a mortgage.
SO, don't sweat it. I promise, it will be the fresh start you need.

I am shocked that your credit is already at a rate where you can get a mortgage! That is wonderful

jennjen512 · Sep 11, 2011

I filed bankruptcy last year and it was discharged last July. I have not had any problems with getting a job at all. I am a travel nurse working with a few different agencies and none of them or the hospitals have mentioned it. I have also been able to buy a car, rent an apartment, and open 2 credit cards since bankruptcy was finalized. If anything, it has been easier for me to get credit because the lenders know that you can't file again for a while (10 years, I think) and my debt to income is much better now. Good luck to you. Everything will be fine.

chicagonurse2b · Sep 11, 2011

I am shocked that your credit is already at a rate where you can get a mortgage! That is wonderful

It depends on your state and the type of bankruptcy. A regular Chapter 7 usually takes a minimum of two years to qualify for mortgage.

ParkerBC,MSN,RN, PhD, RN · Sep 11, 2011

I wanted to clarify some things in the thread. As most of you are already aware, facilities generally hire outside vendors to conduct the background checks. These vendors do request a copy of your credit report. HOWEVER, the portion of the report requested in called the "header". In that section is important identifying information for conducting a criminal history search. The header includes: all of the names you have used (married, maiden, varied spellings because of typos, legal name changes, ect.), your social security number and date of birth. Finally, every address you have ever lived at is included (provided that you applied for credit and it was recorded or you had utility service in your name at the residence).

The vendors cross reference the information you provided on your application with what is in the reports. A criminal history search is conducted based upon the information in your report to include either each state or county you have ever resided or both.

As one other person mentioned, a credit check is often times conducted on those who will be responsible for someone's finances. Even then, I don't think a bankruptcy will affect your eligibility of becoming hired. Now, if you are currently 30, 60, or 90 days late, then I'm sure you will find it difficult to get hired.

JenniferWilson74 · Sep 11, 2011

To clear a few other things up, BK stays on your record for 10yrs. Foreclosure is 7. You can get a mortgage right away, however not through Freddie Mac or Fannie Mae, and since they originate most of the loans out there, then getting a mortgage right after BK/Foreclosure can be difficult. How long Fannie/Freddie make you wait depends on whether it's BK or Forecosure and whether or not there there was a documentable hardship. Also, they keep changing the rules. Last time I checked it was between 2 and 4 years. The important thing to do is go into the BK with a strategy of how to build your credit afterwards, and start working toward that immediately. Oh yeah, and to clear one other thing, you can file BK every seven years, but for people like my mom who always seem to get themselves in a bind, you can do debt consolidation (ch 12) inbetween the 7yr minimum. My mom knows how to work the system... I don't approve, but that's how I know all this.

Ginger's Mom, MSN, RN · Sep 11, 2011

I don't mean to sound harsh, you are in nursing school, that is voluntary. To me being a responsible person is more important than being nurse. I think credit is given to easy and too many people abuse the system and we all pay. I would pay off your debit before you occur more debt ( unless you are on scholarship). I survived cancer, I ran up my credit cards, my husband and I work two jobs for a few years to clear the debt, I didn't return to school until I was out of debt.

Perhaps you will get a job, but think of the bigger picture personal responsibility. The US is partially in this big financial mess since people took out mortgages who didn't have the financial means and walked away from their responsibility. I know of one person working on temp visa, got a mortgage on a McMansion only to proudly give the keys back to the bank when the visa expired. This is wrong when ALL have to pay for others responsibility. I do understand there are situations out of one's control ( death or illness) where bankruptcy is needed, but from the postings here I see way to many not take personal responsibility.

OCNRN63, RN · Sep 11, 2011

I don't mean to sound harsh, you are in nursing school, that is voluntary. To me being a responsible person is more important than being nurse. I think credit is given to easy and too many people abuse the system and we all pay. I would pay off your debit before you occur more debt ( unless you are on scholarship). I survived cancer, I ran up my credit cards, my husband and I work two jobs for a few years to clear the debt, I didn't return to school until I was out of debt.
Perhaps you will get a job, but think of the bigger picture personal responsibility. The US is partially in this big financial mess since people took out mortgages who didn't have the financial means and walked away from their responsibility. I know of one person working on temp visa, got a mortgage on a McMansion only to proudly give the keys back to the bank when the visa expired. This is wrong when ALL have to pay for others responsibility. I do understand there are situations out of one's control ( death or illness) where bankruptcy is needed, but from the postings here I see way to many not take personal responsibility.

Thank you. I was thinking the same thing about school and bankruptcy.

It bothers me to see people saying they filed for bankruptcy, then went out and got a new car and multiple credit cards. Bankruptcy ultimately increases costs for taxpayers.

Many years ago, I incurred huge medical and personal debt due to an illness. Back then, I could have filed for bankruptcy, but I didn't. It was my debt, not the taxpayers'. I am still paying off medical bills every month, and I am dong it while paying new medical bills for another serious (unrelated) illness, and on less income.

Bankruptcy shouldn't be a means to fob off your bills on someone else, plus get a new car and credit cards. To me, that is gaming the system.