Will a Chapter 7 in 2009 Prevent Me from Getting in the Business

[Rocket53]

I had a BK in 2009 after a job loss and also 2 tax liens which I am paying on...Is this a deal breaker to get hired with a NY Life or MassMutual???

 

[DHK]

If you're current with your payments, you should be fine with either company. They may require that you write a letter regarding the circumstances and what you're doing about them, but it shouldn't be a deal breaker.

Now, if you had more than 1 bankruptcy, or aren't current today, then that could be an issue.

 

[walthamny]

If you have been making payments on the tax liens, IRS has a new program where they will waive the lien if you make at least 3 payments on time and you are set up on an automated payment plan. You have to call and ask them to withdraw the lien. You still owe the lien amount, but your credit report will show as tax lien withdrawn. It is worth to make the call even after the 2 hour wait sometimes.

 

[Rocket53]

Great info ... thanks!!!

 

[laknight]

I believe they will look at you and your situation. My understanding is that it is the amount of the lien that can be the deal breaker for liability reasons and E/O coverage. PM me I can discuss in more detail!

 

[walthamny]

I know people at NYL who had 300,000k IRS lien and on a chapter 13 payment plan. It is illegal to discriminate against someone because of past bankruptcy so large insurance companies are not interested in future EEOC claims. They won't deny just because of bankruptcy. Now they can deny you because of credit abuse. If you were betting online, and you have an addiction to gambling, possible decline. The amount of debt you discharge is usually irrelevant for a large company like NYL or Massmutual. Most of the large personal chapter 7 cases are due to uninsured medical bills. And if you deny employment for these folks, you will eventually get sued.

 

[DHK]

I had my credit issues when I interviewed with NYL back in 2008. The managing partner read to me the rules - you have to be on-time with all payments for the past 90 days and it's okay if you had 1 bankruptcy within the past 7-10 years.

Multiple bankruptcies or not being current with your obligations becomes a problem with NYL.

 

[walthamny]

I know they have changed their rules. Now you can only declare chapter 7 once every 8 years anyway. Multiple bankruptcy can happen easily, you file a chapter 13, you loose your job next year convert it to chapter 7. I am sure NYL lawyers saw this and changed the rules. As for being current on your current debts, that is still true. They are offering you a pretty generous contract with cash advances so they are afraid you may inflate some apps to get cash quickly.