Current Employment and Bankruptcy

Due to my husband's upcoming military retirement and several other factors we are forced to possibly file bankruptcy within the next six month. I currently work for a credit card processor and my credit was checked prior to employment, I passed and was hired. Now that we are possibly filing bankruptcy will this effect my employment, is it possible that I could lose my employment? I am not aware that my credit is checked on a regular basis....and I am hesitant to ask anyone.

The company conducted a pre-employment credit check. This indicates that credit is of some importance to the company. Credit history can go directly to financial accountability or be deemed an indicator of responsibility and accountability. Bankruptcy in and of itself is not a bad thing. Bad things happen to good people. An unfortunate event disclosed can be of little significance to your employment but the same event "discovered" often raises questions.

Full disclosure is always the best policy. Regardless of whether or not credit is checked on a regular basis, you should consider disclosing this. Does  company policy require you to inform them of any changes in your financial status? Unless you are responsible for handling a company's money, i.e. finance, a bankruptcy likely would not interfere with your employment however with what I know from your question I cannot say that without a doubt. Why? Well, you made reference to "several other factors."  The nature of these factors is important as are your actual job duties and company policies.

Here is a link to another post Employment After Bankruptcy . Bottom line for me as the average HR Manager, If you tell me about it, I can be much more open and willing to consider and weigh than if you attempt to hide. It goes to integrity and honesty and frankly, the HR staff or company could find out about it anyway.

My thanks to you and your husband - to him for his service and to you for your support. Best of luck to you. 

Comments

[HR Wench]

My guess is if you take a peek at your hiring documents you will see that when you signed off to allow them to check your credit once you also signed off that it is ok for them to check it "from time to time throughout your employment with us" or something like that. In my experience there is no correlation between credit scores and employee performance but alas some companies do use it for just that purpose.
One suggestion - go to your company's website and check the career section. Sometimes PDF's of hiring documents will be on the web for anyone to download. That way you can do a discrete check into the matter.

[Bill Wallace]

Disclosure v privacy. A lovely balance. For those in the HR chair it can be easy to advise disclosure. For those disclosing it is a mind dumbing and anxiety filled event sometimes.
I agree with Lisa, disclosure is best if only because "finding out" is worse. But I will say you've done the right thing in doing some research. Find out what the possible consequences are o you are better prepared. But think about this: as much as your company will check on its employees it is also appropriate for the employee to check on the company. Find out the company policy, its stance on bankruptcy and try and do it completely objectively (i.e. without relation to your situation) If nothing else it will quieten your nerves and probably empower you.

[Wally Bock]

Since you work for a credit card company, there may be some special urgency for you to get out in front of this issue. Many financial institutions look at credit reports because people who are in bad financial shape may be tempted to steal money or data. So several of them have a consent form, required by the FCRA, that allows them to check your credit frequently, as opposed to most organizations who only check when you apply for work. It sounds like you're on top of the situation, which is what they need to know. Lisa's advice is dead on, but the urgency may be a little higher for you because of where you work.

[Lisa Rosendahl]

Wally, Bill and HR Wench, thanks for adding your perspective - you are awesome!

[Lance @ YourHRGuy.com]

I don't think it has been mentioned yet that a company definitely shouldn't take adverse action against an employee who is (or is imminently) declaring bankruptcy. It is against the law to do so. I would recommend that a company exercise extreme caution in this sort of case and for the employee to be aware of their rights.

Now the kicker here is that if the company has a policy that has certain credit guidelines (and those guidelines are BFOQ), they can still enforce them. Those credit guidelines can't consider bankruptcy but can take into account things like credit scores.

As to opening up to an HR manager, I'd like it but I know most people are uncomfortable with the scenario. I would do as HR wench suggested and do some research about it before approaching the manager.