Is it Legal for Someone to Ask Me About Past Bankruptcies?

Filing for bankruptcy has helped many San Diego residents receive the fresh financial start they need. Nonetheless, there are some consequences of bankruptcy that can hinder a person’s job search. One of the most frequently asked questions we receive is whether someone can ask a person about a past bankruptcy. 

Bankruptcies are Public

Bankruptcies are not confidential proceedings. Anyone can search for bankruptcy proceedings because they are a matter of public record. Many people will not spend much time or energy looking up your bankruptcy. You will not need to disclose or talk about your bankruptcy unless it is explicitly required. For example, you may be mandated to disclose a bankruptcy on an application for credit, security clearance, or employment.

Do I Have to Disclose a Bankruptcy to an Employer or Potential Employer?

No, you do not have a duty to proactively tell your employer that you had filed for bankruptcy in the past. However, your employer will be able to find out about your bankruptcy through a credit check or public record check. It is also possible that if you file for bankruptcy, the bankruptcy trustee will send your employer a wage deduction order so your employer can withhold payments from your paycheck.

Many job applications ask about prior bankruptcies. Additionally, many employers require a background check as part of a job application. If you decide to hide your bankruptcy on your application and get the job, and your employer later discovers the bankruptcy, they could terminate your employment. 

If you are wondering whether you should disclose a bankruptcy, consider how long ago the court discharged your debt. If your bankruptcy occurred 10 or more years ago, you should check your credit reports to see if credit bureaus are still reporting the information. Remember that a potential employer may ask your permission to run a credit check and discover that you have had a bankruptcy check. Sometimes, credit bureaus stop reporting bankruptcies after 10 years. You may want to submit a letter explaining why your bankruptcy is no longer relevant.

Many Employers Will Not Ask About Your Bankruptcy

Most potential employers will not dig too deeply into personal matters such as your financial history. One of the main ways that a person’s bankruptcy filing comes up happens when the applicant brings it up. For example, an employer may ask a potential employee why they want the job. Without giving it much consideration, you may answer honestly and say you have been unemployed and are not able to pay your bills and that you have declared bankruptcy. 

Contact a San Diego Bankruptcy Lawyer 

There is no reason that someone who has filed for bankruptcy cannot be a good employee. If you have declared bankruptcy in the past, it does not need to hinder your job search. If you have questions about filing for bankruptcy, you will benefit from discussing your case with an experienced bankruptcy lawyer. Contact Bankruptcy Law Center today to schedule your initial consultation.