As discussed in previous posts, there are many reasons why a person would need to seek some form of debt relief or consider filing for bankruptcy. In fact, many of these reasons -- prolonged illness, divorce, unemployment -- cannot be attributed to any type of irresponsible financial behavior by an individual. Accordingly, you would think/hope that people in these situations would not have their financial struggles held against them.

As it turns out, this is not always the case.

In fact, many employers across the country routinely examine the credit reports of job applicants as part of a behind-the-scenes background check.

"In the past only bank and financial institutions used credit checks," said Amber Yoo of Privacy Rights Clearinghouse, "But over the years it has evolved so that more and more employers are using it to predict character judgments on people."

Unfortunately, this means that a person with a negative credit report -- perhaps the result of something completely beyond their control -- may lose the chance to land a good job simply because an employer is choosing to view their credit report as predictor of job performance.

Fortunately, several states -- including Connecticut, Hawaii, Illinois, Maryland, Oregon, and Washington -- have all passed laws expressly forbidding employers from checking the credit reports of prospective employees.

In fact, California recently joined the ranks of these states, passing a law that bans employers from running credit checks on potential hires unless it is substantially related to their job, meaning unless they are applying for any of the following positions:

  • Managerial positions
  • Positions where the hire would have regular access to confidential information (i.e., bank account numbers, credit card numbers, Social Security numbers)
  • Law enforcement positions
  • Positions in the Department of Justice

It remains to be seen whether Arizona will pass such a measure. However, it can safely be said that it would probably be embraced by many residents during these difficult times ...

Stay tuned for more from our Phoenix bankruptcy blog ...

Whatever the cause, whatever the reasons behind your financial difficulties, take the time to speak with an experienced legal or financial professional if you would like to learn more about Chapter 7 bankruptcy, Chapter 13 bankruptcy or additional debt relief options.

The following post is for informational purposes only and is not to be construed as legal or financial advice.

Source:

WHEC, "Some states working to block companies from checking credit scores of prospective employees" Jan. 3, 2012