When you look at job applicants for open positions, you generally perform background checks before you extend an offer of employment. There is no standard background check because and companies vary in terms of exactly what they check. While financial institutions may check the credit of a job candidate, a fast-food restaurant may not.
What’s Included in an Employment Background Check
Background checks performed for a job candidate include verifying academic credentials. You will want to verify that the candidate has the degree indicated on their application materials. Also, you will verify their previous employment and talk with references. A criminal records check is especially essential for positions of trust/security.
Moreover, you may look at the credit history of an applicant to evaluate their financial stability. This is important if you hire candidates for positions that require working with money or getting a security clearance. In some states, employers are prohibited from considering the credit history of applicants when making employment decisions.
Bankruptcies in Credit Report
Bankruptcies can damage a person’s credit score and could prohibit them from taking on extra credit as creditors are wary of lending to somebody with a history of nonpayment. The length of time a bankruptcy filing can stay on a credit report depends on the kind of bankruptcy being filed. Chapter 7 bankruptcies stay on the credit report for ten years from the filing data while Chapter 13 stays for seven years.
A credit reporting agency like MicroBilt searches public records. If your organization requests a credit report on a job application who declared bankruptcy, the filing will appear. The agency has a tool called Bankruptcy Search which lets you find bankruptcies on individuals and businesses filed in the Federal Bankruptcy courts in the United States in all states, Guam, District of Columbia, and Puerto Rico. MicroBilt constantly updates its tools, ensuring you get comprehensive and current coverage. You can easily search for bankruptcy filings using a job applicant’s business name, address, and SSS/TaxID. You can find bankruptcy search here.
Even if your business has high talent standards, it may have limited resources. Plus, you must make a quick move when hiring new people. But every applicant and employee add business and security risk. That is why you must perform background checks on every applicant. This will help you discover problems that could have adverse effects on your business. By doing a comprehensive background check, including bankruptcy checks, you will be able to effectively manage your hiring process.