The Benefits Of A Bankruptcy Search

Why you should authorize a Bankruptcy Search on potential employees.

In today’s’ world of communication technology, when considering an employee for a key role in a company, especially one carrying a level of financial responsibility, employers can’t be too careful. That is why more and more employers are not inclined to simply trust their judgement; they also safeguard their interests by carrying out a bankruptcy search on the potential employee. There are certain parties who find the very concept of bankruptcy searches an invasion of privacy. However if the employee has nothing to hide, and their credit and financial records are in order, they should in fact welcome the search. All in all, the employer has every right to protect their own good standing.

The Issue of Character in a potential new employee.

It goes without saying that not every new employee should have to undergo a bankruptcy search. Whilst not every job applicant should be forced to wear a badge saying “I am a bankrupt” it is a matter that should be fairly prominent in a person’s records or in the process of an interview. If the job applicant is going to work on a factory floor or in a warehouse, then the issue is a lot less relevant. Where the issue of employing people who have been declared bankrupt can become sensitive is where these new employees come into contact with the public or even more so the business community. Imagine a scenario where your new employee, who is an undischarged bankrupt and who omitted to mention the fact, meets a major client of your company who was a creditor of your new employee. The consequences of this, albeit unlikely, could be very bad for your company, and could result in the loss of a very valuable client if not more than one. The same situation could be repeated in many other scenarios, the bank, the tax authorities to name but a few. So why take the chance? Carry out a bankruptcy check on every new employee who may cause problems to your company through his or her bankruptcy.

The pros and cons of performing A Bankruptcy Search

In the course of a job interview, even from low to medium management levels upwards, the potential employee has a moral if not legal obligation to state the fact that they have been bankrupt. For the employers point of view they should openly state that the intend to carry out a bankruptcy search. This entails requesting from the candidate fuller details especially their previous addresses and places of work. The candidate is fully entitled not to agree to supply this information and even to have a bankruptcy search carried out. However their refusal should and will be generally construed by the personnel department as a legitimate reason not to continue with the person’s candidacy.

If the candidate was forthcoming in stating that they were a bankrupt, either discharged or undischarged, and agrees to discuss the issue and submit to a bankruptcy search, then the candidate should be judged on their merits as a potential employee and be given a fresh start if the personnel department decides that the candidate has sufficient talents to fit the role being offered.

Many people become bankrupts through bad luck, bad judgement or circumstances out of their control. They may have learned from their mistakes in the most difficult way imaginable. However if they continue to make mistakes by attempting to cover up their bankruptcy, then this shows that their character is still flawed.

By carrying out an open bankruptcy search, the personnel department takes all of the personal issues out of the situation. They learn the circumstances of the bankruptcy, how it was handled and in many cases a bankruptcy search can give potential employees an objective insight as to how the person reacted in circumstances of real pressure.