Can a Bankruptcy Affect an Employment Search?

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    Pre-Employment Background Checks

    • Many people think of background checks as involving only their criminal histories, but according to the Privacy Rights Clearinghouse, employers can and do check for many other things as well. Areas potential employers are most likely to examine include educational and employment backgrounds, driving records and credit reports.

    Bankruptcy Discrimination and the Law

    • Federal law prohibits employers from firing employees who declare bankruptcy, but it does not prevent employers from choosing not to hire a person with a bankruptcy on his credit report. Declaring bankruptcy could harm your chances of getting the job you want.

    Tips and Advice

    • According to CHS Law, a debt relief agency based in California, the best thing to do if you have declared bankruptcy is to be honest with potential employers. Briefly explain any factors, such as medical bills, that led to your bankruptcy, and assure the employer that your finances are now in order.

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