What to do with this situation?

Question

A person loses a job through no fault of their own, and for the next year or so unfortunately can't find a new job no matter what they've done (and even though they have a college degree), as a result they run out of money and file bankruptcy.

Then they go to another interview and are rejected yet again, only this time because of their credit report, what can they do?

I know that identity theft victims and their resulting bad credit report is an exception and they will still be considered for the job.

But what about if the reason a person lost their last job was because of discrimination and wrongful termination, and that job loss put them back on a job search that should never have happened, because they should never have been discriminated against and wrongfully terminated?

If that person's credit was pretty good up until shortly after that incident, shouldn't they also be given an exception and be given another chance at the new job they applied for?

Is it enough to write to the credit bureaus and explain in detail why things happened with credit going bad...then telling the potential new employer to re-run the credit check?

I know some of you were suggesting moving to a new area...and that you wouldn't know it, but I can't afford to move. There should be jobs in my area...I don't live in a rural area, and I'm not too far from a major city. The entire economy is bad, so it's not just my area. And if you have a negative credit report now and have been out of work for so long, how will you get approval for a home loan or to move into an apartment? So I'm stuck where I am. Besides, I'm getting pell grants to attend a college in my area. The reason I haven't found a new job in so long is because my previous jobs (while obtaining my previous education) really aren't all that impressive - data entry, low level admin assistant ( no offense to anyone who does those jobs...I was in those jobs to pay my way through college, not make them my career...but that's what they became anyway and they haven't gotten me anywhere) - it seems like my whole resume, according to some potential employers, is a waste.

Answer 1

I had something similiar happen to me but the compny went out of business and because the unemployment was so bad I had to move to a new city where there were jobs.
Now in the interview I had explained to the employer what had happened and done the credit/background check and it came up decisional. It was because my credit sucked.

good luck.

just inform to whom ever you are interviewing the situation if you get to that point.

P.S. I got the job and have been working for two years now.

Answer 2

"s it enough to write to the credit bureaus and explain in detail why things happened with credit going bad...then telling the potential new employer to re-run the credit check?"

Ok, that is not going to work, the CRA's do nothing except report the information that is provided to them, they cannot change what is reported.

It is not against the law for employers to check credit for protential new hires, it's happening more and more every day. However, MOST of them are looking for criminal histories, illegal activity and such. Unless you're trying for a job where you will be handling money, or need to be bonded, your credit history shouldn't matter that much. In addition, it IS against the law for anyone to discriminate against you for filing bankruptcy !

If you have not done anything to clean up your reports and rebuild your credit after the bankruptcy, then that is what you MUST get busy with. You can get all 3 of your reports for free from http://www.annualcreditreport.com . Dispute anything that is not reporting correctly. Every account included in the bankruptcy MUST be noted as 'included in bankruptcy', must report a ZERO balance, and there can be NO lates, charge-offs or anything negative reported AFTER the date of your bankruptcy.

Anything that was negative BEFORE you filed can stay. Any negative reporting on a discharged debt is a violation of the BK law. For more info on repairing and rebuilding post-bankruptcy, head over to http://www.creditboards.com.

Rebuilding credit will be tough w/o a job, so, as suggested, you really just have to take SOMETHING just to get an income going again. It will not stop you from looking for the job you really want.

Answer 3

There are multiple employers out there that do not check a persons credit still. Look for more mom n pop companies, you know the smaller ones. If I wanted to hire you for your talent your credit report even if I pulled it would not stop me, unless you handled money, like at a bank etc. I would be more suspicious of a negative ex employer report against you, or more qualified people applying than you. You can always pack up and try another area to work, America is large and use the internet.

Answer 4

You will probably have to lower your expectations, for a while. Take any job that is available, and repair what can be repaired of your reputation.

It isn't legal in most states to consider your credit report as a basis for employment, excepting some financially sensitive jobs where embezzlement is a real risk.

You can't win the illegal discharge argument either. Employers don't want to hear that the last guy either caught you doing something that put their business at risk or that you think you know more than the policy makers.

Answer 5

Hun, that's relay not going to do much...unless you can afford a good lawyer! they've heard every excuse in the book and quite frankly, wont relay give you a chance. My suggestion is to try to pack up and go somewhere else in the country that is looking for alot of workers. Who might do a criminal record check, but not a credit...that's only a way to keep the poor, poorer. You must be in an area that is over-populated. Where you have to fight others to get a job. Why bother, there are plenty of places in the world who need workers desperately! I live in Alberta, Canada. We certainly do not have the same problem, in fact, even the cashiers at McDonald's make 13$/hour. If you are male, there if an overabundance of work, with a wallet stuffing paycheck. Where i work, we have problems keeping staff in fear that another company might snatch them up, offering them more money, so Honey...you need to move.

Answer 6

If said person was wrongfully terminated due to one form or another of discrimination, legal action should be taken against the company that discriminated. If, after meeting with an employment lawyer, there is no case to be had...drown your sorrows at the local pub and offer your story as bragging rights for how terrible your life has become. ;-) just kidding. Good Luck, sorry for your loss :-(

Answer 7

No, they should not be given such an exception. Your circumstances are unfortunate. What you must do is sue the employer and company that discriminated against you. With these types of cases, lawyers work for free, and only get paid if you win. Good luck!

Answer 8

Talk to a lawyer, I think some will take your case against your old job and you dont have to pay them unless you win. You can try to write the credit company but dont hold your breath, unless its identity theft they probably wont do anything. Sorry about what happened. Good luck

Answer 9

Don't be a victim. Our society is full of them already. Iwould assume you could not find a job equal to or better than your previous job. They are always jobs. McDonalds? Wal-MArt? Temp agency? 12 months with no job seems a bit off. IF you have honestly tried to get a job at every buisness in your town then I would say move. You said you could not find a job in your town, someone suggested moving, then you came back with there has to be a job on my town. Which is it? Good luck. SOmetimes we have to swallow our pride in order to get where we want to be, if even for a short time.

Answer 10

Provide documentation from your attorney that you were wrongfully terminated (I'm assuming that you sued since this is highly illegal.) I'm sure the potential employer will take that into consideration.