Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Will anyone find out about my bankruptcy?”
No one doubts that bankruptcy is a big deal. But when that big deal is finally in your rear-view mirror, how big of a deal is the fact that you have gone through bankruptcy to a potential employer?
It can be a very big deal, depending on the employer. Most employers ask applicants if they have ever declared bankruptcy. Even if they do not ask, however, employers will probably find out anyways. Bankruptcies are reflected on credit reports, and many services that provide background checks on prospective employees display data related to bankruptcy filings.
And it’s not always the bankruptcy, in and of itself, that is most damaging to a prospective employee’s chances at landing a job. Oftentimes the credit report itself—evincing the battle scars of financial troubles that led (or almost led) to bankruptcy—is enough to screen your application out. Bad credit scores and numerous delinquencies may indicate a theft risk to some employers. Others may reason that if you cannot keep up with your own day-to-day finances, you will not be able to keep up with the day-to-day vagaries of the position for which you are applying.
While it is not legal for employers to reject an applicant just because one has declared bankruptcy, it is perfectly legal to reject an applicant on the basis of a poor credit score or poor credit history.