Bankruptcy?

[ncwest]

Hey everyone. I have read alot of the posts on here about credit and such, and the general consensus is that you should have decent credit if you want to be considered as an LEO by many departments. My question is though, what if my credit isn't necessarily great, but I don't have any debt because I have filed bankruptcy in the past. Will that hurt me more or less than having just terrible credit? Everyone that comments on other peoples debt questions says that steadily paying it off shows that you have initiative and integrity...in my situation it was completely necessary to file and while I don't have great credit, I also don't have any debts. Any comments would be appreciated, thanks alot.

[MP_Steve]

Hey everyone. I have read alot of the posts on here about credit and such, and the general consensus is that you should have decent credit if you want to be considered as an LEO by many departments. My question is though, what if my credit isn't necessarily great, but I don't have any debt because I have filed bankruptcy in the past. Will that hurt me more or less than having just terrible credit? Everyone that comments on other peoples debt questions says that steadily paying it off shows that you have initiative and integrity...in my situation it was completely necessary to file and while I don't have great credit, I also don't have any debts. Any comments would be appreciated, thanks alot.

To the best of my knowledge, a bankruptcy will remain in your credit report for seven years. Chances are not in your favor until that clears.

I can deffinately guarantee you will not get hired by a federal agency until the bankruptcy clears because you are required to maintain a security clearance, which you wouldn't be eligible for.

All that aside, you'll still need to make it through every other portion of the hiring process.

[mxwelch]

Why did you file? Was it due to a lack of control spending money or something that arose unseen like a serious illness or injury?

[Johninaustin]

Why and when are the two biggest factors, as well as your CURRENT spending habits. It won't look good in any case. I've never seen anyone get hired with one newer than 9 years.

[ncwest]

Thank you for the responses thus far. A little more background on the situation is that I filed in 2008 mainly due to disputes over medical bills. I am (and was at the time) a full time student and am employed part time at a landscaping company. I did have alot of old credit card debt from years ago that I was slowly paying off and then I had to have surgery to remove a pylonidal cyst that had been bothering me for years. Being that my fiance works for a major retail outlet, their insurance policy extends to cover "Opposite Sex Life Partners" so I have been covered for medical insurance through her. Also being that I am a full time student, hers is the main source of income in our household. Before the surgery, I received a notice that all I would be responsible for after the insurance coverage was $200. Come to find out, AFTER the procedure the insurance company starts sending me bills for $3,000 for this and $5,000 for that and so on and so forth. I sent the hospital and the insurance company copies of the pre-bill that I received prior to the surgery that stated that all I was going to be responsible for was the $200 and that I couldn't afford all these other mounting bills. They agreed that I could pay the $200 because that was in fact what they had told me, and so I did. Fast forward to 3 months later and I receive a collection notice in the mail for roughly $10,000 from the insurance company stating that I never followed through on the agreement and since I have defaulted in that I am now responsible for the entire bill, plus late penalties. I went round and round with the Insurance Co., but they would not budge. Being that I paid the $200 in cash, I didn't really have a leg to stand on. So, a few more months go by and needless to say with the back debt that I was struggling to pay off and now the late fees piling up (and no end in sight), I consulted with an attorney who is a family friend and he advised me to file. In a nutshell, albeit a very LARGE nutshell, that was the situation. Thank you for taking the time to read it and comment on it, I apologize for the epic post.


Side note -

My driving history is for the most part clear. I have only received 3 speeding tickets in my entire 29 years of walking this earth, and the last one I believe was in 2001. I have never been arrested or convicted for anything and my background is otherwise pretty clear. Thanks again!

[MP_Steve]

I have only received 3 speeding tickets in my entire 29 years of walking this earth

Geez, how fast were you walking?! :confused:


:p

[ncwest]

Geez, how fast were you walking?! :confused:


:p

:D HaHa.


edit: one of the comments left was "what are my current spending habits?" To answer that one, I live within my means. We (my fiance and myself) don't spend ridiculous amounts of money each month and if we want something that isn't in our budget for the month, we save up for it and pay for it in cash. I no longer use credit cards (except for our bank check/debit card, if that counts) and the only actual bills we have are cell phones and utilities. Both of our cars are in my name and both are free and clear 100%.

I am working on my Associates in Criminal Justice - Law Enforcement right now and when I graduate I am going to put myself through an academy, more than likely the academy at Oakland Community College. As for right now, I have a test date for the Michigan State Police - Civil Service exam and I hope that they will be able to look past that nasty bankruptcy scar and judge me on my all around good character and driving record instead. It has been a dream of mine to become an LEO ever since I was in kindergarten. My family has a history of LEOs in it and I would love to carry on the tradition. My great-grandfather retired from the Wayne County Sheriff's department and my grandfather retired with 35 years as a Det.Sgt from the Detroit PD.

[SnapShawt]

Credit issues and bankruptcies are not as cut and dry as some may lead you to believe. It depends of the reasons and your efforts to pay your JUST debts. When I was hired, I didn't have the best credit. I had three fairly large dings, and I was very honest about them. I told my interview board that I attempted to make arrangements with the original creditors in those cases, but they said I would have to deal with the collectors. The collectors tagged on enormous collection fees, and I told them they can report until the cows come home and kiss my lily white *ss. The debt was just and a reasonable collection fee would have been just, but they were just being thieves in business clothing.