Monday, 25 October 2010

Employment After Bankruptcy-parts 1




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Debtors need employment after bankruptcy, but many may be denied job opportunities simply because of past financial failure. A bankrupt individual is like a teenager who is repeatedly turned down for jobs because he lacks experience. But if he keeps on getting turned down, he will never get the experience he needs. Somebody has to take a chance on the youngster and give him his first job. Likewise, employers must be willing to take a chance on hiring someone who has been bankrupt. Many businesses tend to shy away from employing individuals who have filed for consumer debt protection because they often deem them to be financially irresponsible. But when it comes to finding work, no one needs a job more than someone who has had to file bankruptcy, especially when indebtedness is due to joblessness. And while the U.S. Bankruptcy Court forgives debtors who have debts discharged under a Chapter 7 petition, some prospective employers do not. But forgiveness of debt is a Biblical principle beautifully illustrated in the 18th chapter of the Book of Matthew. "Then the lord of that servant was moved with compassion, and loosed him, and forgave him the debt." (Matthew 18:27). Although consumer debt protection provides a legal solution for individuals who find themselves unable to honor financial obligations, the effects of bankruptcy on employment opportunities may place job seekers in serious jeopardy, unless employers are willing to give them a second chance.

Finding employment after bankruptcy can be quite a challenge! Applicants applying for work in banking, retail merchandising, government, security, and outside sales have always been routinely screened by prospective employers to verify clean credit records, clear criminal background checks, and negative drug tests. However in recent years, extensive screening, including credit checks, has become the norm for increasingly more occupations. An individual may possess all of the qualifications, but if a Chapter 7 or 13 proceeding appears on the credit report, they may be denied the job. The Fair Credit Reporting Act requires consumer reporting agencies to divulge information (good or bad) about job applicants to business owners requesting it. Since Chapter 7 and 13 bankruptcies remain on a consumer's report for as much as ten years, debtors with blemished financial records face real obstacles when seeking employment after bankruptcy. The best recourse is to inform interviewers regarding any discrepancies that might be found in credit reports or background checks before they discover them. Fortunately, some companies realize that bad things do happen to good people. They may choose to overlook negative financial histories and hire a bankrupt individual based on past work performance, experience, and professional qualifications.

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