Would you judge someone if you found they were bankrupt?

[rabbit12345]

This question. How would you/would you judge someone who had applied for bankruptcy?

Firstly as a friend or an interviewer.

I know aibu for not giving further details but I wanted a response based on the bankrupt fact not the reasons why etc..I will explain why though after considering the responses.

I wouldn't judge as a friend. As an interviewer I might judge although it depends very much on the job. For many it wouldn't matter. It's not as if they have been dishonest or criminal is it? Why would it come up though if someone was being interviewed?

I think the term doesn't give any indication of the circumstances, tbh.

DH and I went bankrupt 11 years ago. We only had a combined debt of £16,000, and my debt was 'only' £6,000 (I say 'only' to acknowledge that I realise it was still a large debt, and one I couldn't pay, but in terms of debts, it's very small). However, we couldn't pay it, and we had taken consolidation loans to try and manage our debts and were at the end of our line. No such thing as DROs, then, and no assets.

We couldn't afford childcare, my DD was 1 year old, and my Mum, who was taking care of DD1 when I was working 30 hours per week, was clearly not managing with her (MH). The only solution was for me to stay at home with her, which I could only manage if we didn't have the debt. It was impossible.

Because DH and I had consolidated loans and debts from each other, the advice we were given was that he could be held responsible for my debts and I could be held responsible for his. The only way we could be completely clear of them all was if we both filed bankruptcy. The Judge said that although the sums were low, he saw the sense in our case and he wished us well.

As for learning our lesson, we have never had a loan, overdraft, credit card or any other credit since, despite being bombarded with offers. Our 'bottom line' is £0. That's when we run out of money. I panic if we go below £300 in the account.

@weepingangel12 presumably a credit check. I worked in a call centre once (no customer payment handling, nothing to do with money) and I had to have a credit check done.
For whatever reason, they feel its necessary for all employees.

I think all bankruptcies are still recorded in the London gazette, some recruiters/employers may scan through there in the same way they may scan through a facebook profile to build a character profile.

Personal level - no

If I were interviewing someone - depends on the job.

I’m not in a position to interview applicants, but I’m thinking scaffolding/chef/Dr - no problem, sales assistant/financial advisors/charity worker- could be a problem.

Anyone that judges someone without knowing the facts is someone not worth knowing.

For example, poor health, redundancy, over optimism is a far cry from someone who skimmed a lot of money out of a business before letting it fold. I'd have more respect for someone who went bankrupt than a Ltd company that went down with no liability. I don't think people personally go bankrupt without fighting damn hard first. Only one one bankrupt person who I have no respect for but his circumstances are exceptionally dodgy and known to be so!

'Anyone that judges someone without knowing the facts is someone not worth knowing.'

This.

I wouldn't judge or think twice about it on a personal level, but I wouldn't get involved in any financial dealings without knowing the circumstances.

Lots of famous people and big companies have filed for bankruptcy. Unless the person seemed flaky I would assume it was bad luck or an unfortunate business decision. If it seemed to be their fault I'd feel a bit sorry for them in a "there but for the grace of God go I" manner.

I think it's all in the detail,
I know someone who opened a high street service business in small town and did well until new competitors began a price war. They only just managed to avoid bankrupsy, so no I wouldn't judge someone in those circumstances. They moved to smaller house and were lucky enough to retrain and find a new career, which wouldn't have happened if new employer hadn't taken a chance on them (I guess it helped that employer was local). Life happens and we never know what is around the corner, people like that need a second chance to get back on their feet. I've also seen hopeful local businesses set up round here, only to fall foul of dramatic rent and rates increases. I'd put them in the same category. They're often the ones who personally lose the most and the premises stand empty.
However, I've experience of an accountant locally who has set up companies and then wound them up more than once. That I would judge more harshly.

No for both.

Shit happens. To everyone. No one knows what's round the corner.

A friend of mine went bankrupt in 1991. I know the circumstances and they were unavoidable, so I don't judge. If I met someone now who said they were bankrupt I would feel pretty sorry for them, unless they seemed quite smug that they had used it to avoid paying back owed money (e.g., dodgy business).

I cannot imagine why it would be my business as an interviewer. Unless there is some reason why you would have to tell them, keep quiet about it. IME it is best never to volunteer negative information on job applications or interviews, so dont do it unless you are legally required to do so.

It depends what you mean by "judge".

• Would I think less of them as a person. No.

• Would I think they had good money management skills. Possibly not. It might affect an interview for a post where money management was relevant unless there was a good explanation. I knew a guy who was a kitchen fitter who went bankrupt when an arsehole customer refused to pay for an incredibly expensive handmade kitchen. I thought more of him, rather than less, after I'd heard his story.

People get into debt (sometimes leading to bankruptcy) for all kinds of reasons. A very dear friend of mine got into 20k of debt when her deadbeat husband walked out on her and flitted off to another country, never to be seen or heard of for years.
She worked FT but could not manage all the bills, rent etc and ended up using credit cards to feed herself and baby twins.
In the end she contacted a debt charity (CAP) as she was in utter dispair. They worked with her to declare herself bankrupt. She's in a much, much better place now but still lives with 'the shame of it all' (her words, not mine).

Honestly, it would depend on the circumstances.

A guy I know puts money on his credit card and only pays bare minimum off each month (even though he can afford more) and adds to it each month. I would probably judge him as he seems really reckless with money.

Someone in your circumstance. Probably not. My health isn’t that good so I know how quickly health can affect work.
It will probably affect what job you can get but it won’t affect all jobs

No, I wouldn't.

I know how some smaller businesses are at the mercy of their customers and suppliers. It only takes one big customer to go bust, or even delay an invoice payment, for a business to get into serious problems.

And even if it is down to some poor decisions, I'd still admire the person for having the courage to run a business. Takes a special form of guts.

I can only imagine the stress but would echo what others have said have you found proper free advice like
www.stepchange.org/debt-info/self-employed-debt-advice.aspx
www.businessdebtline.org/EW/information/Pages/default.aspx

Some people will judge some wont, for some jobs this will be a barrier for others it wont.
Good Luck for the future whatever path it takes for you

Nope.

It's shit for sure, but it's just a life phase and you'll come through it.

Richard Branson was bankrupt multiple times before becoming the successful millionaire he is today.

Donald Trump has declared bankruptcy on many businesses ventures.

There are many reasons why someone might need to bankruptcy.....I would never judge. I’m not exactly squeaky clean and debt free myself.

I judge those who declare bankruptcy to start afresh, for a clean break. I’ve known someone also do it then choose not to work until she no longer had to pay anything back (her DP supported her). It’s not ok to walk away from your debts, none of the rest of us can.

No everyone makes mistakes and anyone could find themselves bankrupt. Would I want them running my finance department? No, I wouldn’t. But I wouldn’t judge them.

Gambling is both and addiction and a mistake. We all make mistakes.

With Bankruptcy it really depends on the circumstances.
I used to work in the High Court so saw a lot of it. A few people had been "turned over" by dishonest business partners whereas others would just not stop spending, or going bankrupt to get themselves out of a financial hole of their own making.
I can say that I used to feel cross at many (the majority) of them who had just not shown any common sense and been ostrich like with regard to their financial problems.

Years ago when I was a retail manager I employed a woman who told me that both she and her husband were both bankrupt, it didn't affect my decision in giving her the job.
However she would never take any responsibility for any of her mistakes/wrong decisions etc, so I must admit I have since wondered if there are those who see it as a "way out" rather than face up to reality.

Initially, yes.

But if it turned out there were genuine reasons, then I'd maybe reconsider.

Having been bitten myself, and knowing several others who've been bitten, by people who've run up debt, and then gone bankrupt to avoid paying, I'm not particularly sympathetic. It's all well and good in theory to give the benefit of the doubt, but in reality, when I'm personally out of pocket by people not paying their debts, it's painful and hard not to judge.

It's not a victimless crime. Yes, a big business may not miss a few hundred or a few thousand, but a lot of the time, there are smaller businesses involved which simply can't absorb customers who don't pay.

*I judge those who declare bankruptcy to start afresh, for a clean break. I’ve known someone also do it then choose not to work until she no longer had to pay anything back (her DP supported her). It’s not ok to walk away from your debts, none of the rest of us can.“

I find this attitude very frustrating and simplistic. This is the attitude that stops more people from declaring bankruptcy- because they are ashamed and only expect to be humiliated further.

But this is what bankruptcy is FOR. Society has to have a way of acknowledging you can’t get blood from a stone and allowing people to make a fresh start. It simply must.