I recently paid off a Chapter 13 Bankruptcy and I am awaiting my discharge. I am currently unemployed and would like any feedback on how employers may look at a Bankruptcy filing when they pull a credit report as part of their employment process. Prior to my filing as a result of a bad business, my credit scores were excellent. My mortgage and car loans were always paid on time even during the Chapter 13. Any help would be greatly appreciated.
Actually, it can sometimes be better to file for BK than not to. For example, my husband is in the military, and as you get promoted you need to get higher levels of security clearance. If your finances are in shambles (collections, repo's, etc.) you can actually be denied security clearance and ultimately be discharged from the military. The same with a federal job as a civilian. My sister is facing this dilemma now- she was told that her current financial status would prevent her from getting the next level of security clearance that she needs in one year (she has a federal job with a government contractor), and she is faced with some tough choices, BK being one of the options.
So, in my opinion, it's better to have a BK on your credit than a ton of unpaid bills, collections, repo's, etc.
There are plenty of employers who do not look at your credit report prior to hiring you, so it might not even be an issue. I have only had one possible employer pull my credit, and it was for a job at a bank. It was about one year after my BK discharge, and I was offered a job at the bank without a word about my credit, so they did not have a problem with the BK on my file.