Expert: Michael Troy - 7/15/2003

Question
"" I HAVE BEEN ON TWO INTERVIEWS AND WAS WONDERING IF I SHOULD MENTION THE FACT THAT I FILED FOR BANCRUPTCY ALMOST 7 YEARS AGO? DO I OFFER THE INFORMATION WHEN I AM INFORMED THAT THEY WILL PERFORM A CREDIT CHECK? I STILL HAVE A FEW SECURED CARDS WHICH I HAVE BEEN PAYING ON TIME AND I WORKED IN THE CASH OFFICE OF A LARGE DEPARMENT STORE HANDLING $24,000.00-$200,000.00 PREPARING THE DEPOSIT FOR THE STORE, WOULD THAT SHOW THAT I AM TRUSTWORTHY?" IS A BACKGROUND CHECK THE SAME AS A CREDIT CHECK? THE LAST INTERVIEW I WENT ON WENT REALLY WELL AND THE INTERVIEWER SAID SHE WOULD SET UP A SECOND INTERVIEW WITH ANOTHER MANAGER BUT SO FAR I HAVE NOT HEARD FROM HER .I CALLED BACK 2 DAYS AFTER THE INTERVIEW AND LEFT A MESSAGE ON HER VOICE MAIL. THIS LAST INTERVIEW WAS FOR A SMALLER SPECIALTY STORE BOTH INTERVIEWS WERE FOR MANAGEMENT POSITIONS . I AM REALLY CONFUSED ON WHAT I SHOULD DO ABOUT THIS .I FILLED OUT APPLICATIONS INCLUDING MY SOCIAL SECURITY NUMBER .I KNOW THAT BANCRUPTCY STAYS WITH YOU FOR 7-10 YEARS, BUT I DON'T THINK THAT I SHOULD BE TURNED DOWN FOR A JOB FOR THAT REASON I HAVE BEEN WITH THE SAME COMPANY NOW FOR 7 YEARS SO MY WORK HISTORY ALONE SHOULD HAVE SOME IMPACT! PLEASE ANY ADVICE YOU CAN GIVE ME WOULD BE SO MUCH APPRECIATED. THANK YOU FOR YOUR TIME


Answer
Hi Debbie,

First off, let me say that it is illegal for me to provide specific legal advice to you without being a licensed member of the bar in your home state.  Different states have different laws and rules that may be applicable to your situation and about which I am unaware.  If you need to get specific legal advice on this matter, I recommend retaining an attorney.

Let me also say that although I consider myself an expert on laws relating to race discrimination, I don't consider myself an expert on all areas of employment law.

That said, I'm happy to discuss generally the rules regarding credit checks.  These are just a few thoughts that may help, it does not constitute a full and thorough legal analysis of your situation.

Many employers use credit checks because they are easy to get and because many employers think it can show something about the character or stability of the applicant.

My understanding of the Fair Credit Reporting Act of 1970 is that an employer must tell a rejected applicant if they were rejected because of something on their credit report.  The Act also makes it illegal to discriminate in the hiring of an applicant simply because that has declared bankruptcy.  Of course, one can use other elements of the credit history as part of their decision making process.

However, I can tell you from experience that employers will rarely admit to the true reason for not hiring someone.  There are a million reasons why an employer might pick one applicant over another.  If, secretly, they did it because of your bankruptcy, they would never admit that, at least if they are aware of the law.  They would give some other reason.

Also, a background check is usually more extensive than a credit check.  It often means checking for any criminal history, past lawsuits, or other information about the person beyond credit history.

If you want to push the issue, you could ask a person why you were rejected for a job.  If they are foolish enough to admit to you that it was because of your bankruptcy, you could get a lawyer and sue them.  

Of course there might be other reasons for the rejection (LIKE TYPING YOUR EMAILS IN ALL CAPS!).  The economy right now is making jobs more competitive.  Even absent thinking about a suit, it's a good idea to speak with someone who has rejected you - find out what concerned them and see if there are things you can change to make yourself more appealing for the next interview.

Good Luck!
- Mike