Do Bankruptcy Cases Show Up on Background Checks? Here’s What to Know

Do Bankruptcies Show Up On Background Checks

You’ve had some financial struggles in life. Perhaps you’ve made a few mistakes or maybe you’re the victim of bad circumstances. Either way, bankruptcy was your way out. You may be surprised and a bit disheartened to realize that the day you filed for bankruptcy was not the end of this nightmare.

You see, a bankruptcy stays on your record for a long time. You’re not the only one who knows about it, others will too. Do bankruptcies show up on background checks? Who can see? When can they see? Why would they look? Let’s answer all of these questions right now.

Main Causes of Bankruptcy

Filing For Bankruptcy

Someone who has never struggled financially may envision needing bankruptcy because of poor purchasing decisions. In reality, people go through financial distress for many reasons. A few of the most common causes of bankruptcy are:

  • Divorce
  • Expensive medical bills caused by a disability or chronic illness
  • Poor financial management of purchasing a car or home
  • Student loans
  • Reduced income 
  • Job loss
  • Unexpected emergencies

Filing for bankruptcy doesn’t make you a bad person. We know that and you know that too. Do employers making hiring decisions know it, though? Does someone looking at your credit history realize you just had a bad situation out of your control? 

Do Bankruptcies Show Up on Background Checks?

The above questions are tough to answer. Really, it depends. This isn’t something to ignore, though, because there are quite a few people who can and will run a background check on you.

Criminal Background Checks

Bankruptcies won’t show up in the results of criminal background checks, as those provide information about criminal records and histories. Filing bankruptcy is not a crime and won’t be found in criminal records.

Employment Screenings

When applying for a job, it is not uncommon for the employer to run a variety of background checks. It’s tough to say whether or not your potential employer will see your bankruptcy, because it depends on the type of employment background check they run. They may only be concerned with whether you’re a felon. 

Depending on the type of job you’re applying for, they may see this in your past and decide not to hire you. This would be in the case of a job involving finances, like an accountant or money manager. 

Federal Bankruptcy Checks

A Federal Bankruptcy Search checks federal bankruptcy courts for any bankruptcy filings, regardless of the type of bankruptcy. These results will reveal any Chapter 7 bankruptcies, Chapter 11 bankruptcies, and Chapter 13 bankruptcies going back a maximum of 10 years. This is outlined by the Fair Credit Reporting Act (FCRA).

What Do Background Checks Look Through?

Financial Relief Through Bankruptcy

Do bankruptcies show up on background checks? Whether or not your past bankruptcy will show up on a background check has more to do with the type of background check someone decides to run than anything else. If you’re applying for a new apartment, your past financial record provided by credit reporting agencies may be applicable. If you’re applying for a job and you don’t handle money, they may not even see it or they may allow you the opportunity to explain the circumstances.

Do not let the possibility of a future employer or anyone else seeing your bankruptcy stop you from filing. Bankruptcy provides financial relief you wouldn’t otherwise have. More than likely, your bankruptcy will not come up with employers. It will not come up on a criminal background check either. It will only be visible and applicable if someone is running a check on your financial situation.

In need of professional bankruptcy attorneys in Kansas City, MO? You can be sure to count on Kentner Wyatt Attorneys at Law! Contact us and claim your free consultation!