JJM84 wrote:So are you saying that people with defaulted loans or past due accounts are not able to pass character and fitness? This is VERY hard to believe unless there are extreme examples.
I don't know that they're not able to *pass*, but it is an issue that they look into. I've heard that defaulting on government-backed student loans are a big no-no, not just for getting admitted to practice law, but as a bar to employment (especially government jobs) or other professional licensing. That's why so many employers require a credit check before giving you a formal job offer.
Here are some finance-related questions on the IL C&F application (bolding mine):
35 Has any surety on any bond on which you were the principal or obligor been required to pay any money on your behalf?
If yes, complete Form 35 for each bond.
Debt or Obligation, Credit Card Revoked and Student Loan
36A Have you ever had any debt or obligation, including, without limitation, credit card debts, student loans, bank loans, and court-ordered obligations to pay child support, alimony and family support reported as more than 60 days past due?
If yes, complete a separate Form 36A for each debt or obligation.
36B Have you ever had a credit card revoked or involuntarily canceled, a credit account involuntarily closed, or any debt referred to collection or charged off as not collectible?
If yes, complete a separate Form 36B for each account.
36C Have you ever defaulted on any student loan?
If yes, complete a separate Form 36C for each defaulted loan.
Failed to File any Federal, State or Local Income Tax Return as Required by Law
37 Except if due to insufficient income, have you ever failed to file any federal, state or local income tax return as required by law, failed to pay any taxes when due, including employers' withholding taxes, or entered into any repayment agreement with a taxing authority?
If yes, explain and for each instance advise the year, the reason for the failure to file or to pay when due, and the status or final outcome of the matter. In addition, you must submit with the paper portion of your application documentation establishing that taxes are current.
Filed for Relief under Federal Bankruptcy Law
38 Have you ever filed for relief under federal bankruptcy law?