For many people, a major concern when filing for bankruptcy is wondering whether friends, family or co-workers will find out. Most people are concerned about that, but the situation is a bit complicated.
Bankruptcy is a matter of public record, which means it goes onto your credit report. It can stay on your credit report for up to 10 years. Now, your friends will not be checking your credit report. So, unless you tell your friends you’ve filed for bankruptcy, they almost certainly will not know about it.
Your future creditors will know about it when they review your credit report to determine whether or not to lend you money. It could also cost you more to borrow money in the future if you have a bankruptcy on your credit report. Some employers do check credit reports when they make a new hire — some employers don’t. That’s an individual determination made by the employer.
If you’re going to get a job in security and you need a security clearance, like a secret or top secret security clearance for the government, bankruptcy can sometimes hurt you when it comes to those clearances. They can deny you those clearances if you have a bankruptcy on your record, so you need to be careful if you work for the military or if you work in some sort of industry that requires secret or top secret clearance.
Other than that, employers cannot really discriminate against you on the grounds that you have filed for bankruptcy. It can be a factor, but it cannot be the sole factor in determining your suitability for employment.
The other concern is rentals. If you’re planning on renting a property and you have a bankruptcy on your record, that can negatively affect you. But again, landlords cannot discriminate against you and not rent to you solely on the basis that you have a bankruptcy on your record.