As an employer, you know you should background screen your employees… but what happens when the background check comes back and there’s a bankruptcy on your potential worker’s report?
It’s a conundrum faced by many employers, especially since more and more people and businesses have filed bankruptcy since the market changed dramatically in 2008. (The increase in percentages of bankruptcy filings are quite staggering — up over 30% between 2008 and 2009.)
On one hand, a bankruptcy doesn’t necessarily equate to a person’s character as a worker. Individuals and families may resort to bankruptcy for a number of legitimate reasons, including unexpected medical bills and identity theft. However, this doesn’t mean the potential employer has to take on a risk.
If your possible new hire has a bankruptcy on his or her background screening report and you still want to consider him or her for the position, it’s important to get further information. The more you know the better your final decision will be.