is it legal to fire someone for having bad credit?

I believe that the logic the company uses is that your bad credit and need for money may overwhelm your ethics.

They have statistics on their side.

Besides, if you don't take your bills and your personal obligations seriously, they have a right to doubt your devotion to their goals.

Here again, statistics are on the side of the employer.

The thing is they did a credit check on me when I started this job, and my credit was fine. Several things have happened out of my control like baby getting sick and missing work. Those things have nothing to do with my ethics. My baby comes first. Not all people who have bad credit do it on purpose. Life is not always easy.

If you know that you have financial problems that will show up with a credit check, go to your supervisor and explain the situation. You have nothing to lose and having the story behind the facts may make a difference.

There is another issue that the company has to consider. If you are sued, and your salary is garnished, the company will have problems that they don't need.

I agree with Noddy. Be up front about your situation. Maybe there are some kind souls in the company who will understand.

I hope so because losing my job is only going to make things worse.

Wow, Noddy and Phoenix, that's damn good advice!

Another thing is that when an employees credit goes south the employer can expect phone calls, letters, drop ins from collection agents.

Not fun at all.

When that happens they will ususally look for another reason to fire you.

In addition to following the advice Noddy and Phoenix have given you, you might get some credit counseling first. That way when you approach your boss to discuss the problem you can show that you are taking it seriously, accepting responsiblilty and are trying to make good.

Bosses dig that.

Credit counseling is free!

Unfortunately I have done all of that. I have looked into bankruptcy, and also debt consolidation. You must have money down to start most programs, and so far the ones I have found that don't require money down are asking me to pay a monthly payment much higher than what I am paying now.

bms welcome to A2k. Are you living in a Right To Work State: Arizona, Virginia, Texas, Utah, Colorado, there are two more that I cannot remember right now? If so you are probably out of luck no matter what.

However, if you tell them about the problem and start working on the solution right away you might get to stay.

As for bankruptcy if you file a Chapter 13 the attorney usually takes his fee from the payments you make to the court. However, chapter 13 will show up as just a bankruptcy on your credit record and will not be discharged until the money owed is paid off. The good thing about Chap. 13 is that your attorney can negotiate repayments for total less than you actually owe and interest stops. In addition the Court will issue a stay to all of your creditors so that your wages cannot be garnished and bill collectors cannot contact you either at home or work.

Yes I live in Texas!

TX is the best state for bankruptcy. Contact an atternoy right away and see if you can file for Chap. 13. In TX you can keep all of you property, car, house, etc. But you really need the advice of an attorny admited to the TX bar certified as a specialist in bankruptcy.

Thanks for the advice!

I wouldn't file for bankruptcy unless you have a LOT of debt you can't pay. It's not worth trashing your credit for that long over a few grand or so. If you don't have a lot of debt you're better off paying it off, it'll clean your credit faster. Bankruptcy stays on your credit for a long time, and is a huge flag when lenders check you out.