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    Laughing boy's Avatar
    Laughing boy Posts: 1, Reputation: 1
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    #1

    Jan 15, 2015, 03:54 AM
    Employment after bankruptcy.
    What's the law on someone taking on a job such as handling invoices and money if they have been made bankrupt twice?
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
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    #2

    Jan 15, 2015, 05:01 AM
    What country? No one is 'made' bankrupt.
    I know of no laws in the US regarding this. Unless you had to file bankruptcy for reasons having to do with criminal acts like fraud.
    It shouldn't even be asked by an employer, but if it is, you need to tell the truth. I doubt it will. Questions about court actions have to do with criminal cases, not civil.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Jan 15, 2015, 05:59 AM
    Any question on law needs to include your general local as laws vary by area. But I know of no LAW preventing someone from working at any job with prior bankruptcies. A bankruptcy is not a criminal offense as Joy said.

    On the other hand, having a bankruptcy on your record is not going to look good to employers. And not mentioning the bankruptcies will have a bad effect because a background check will probably reveal them.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #4

    Jan 15, 2015, 08:28 AM
    Quote Originally Posted by joypulv
    ... Unless you had to file bankruptcy for reasons having to do with criminal acts like fraud.
    It shouldn't even be asked by an employer, but if it is, you need to tell the truth. I doubt it will. Questions about court actions have to do with criminal cases, not civil.
    A potential employer certainly may ask about bankruptcy.

    And I also disagree with he statement that potential employers may not ask about civil cases (such as bankruptcies).
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #5

    Jan 15, 2015, 09:13 AM
    I checked this with our HR dept. The answer I got was that it would not be a question that was allowed to be asked. However, if the position had to do with finance, a credit check would be done. This partially surprised me. I don't remember ever seeing an employment application that asked anything about civil cases, but I don't know if that was because of practice or law. Now this is NYS so it may vary.

    But the bottom line here is that, if this is for a position "handling invoices and money" a credit check is likely to be done that would reveal the history. So it should be mentioned up front.

    But I still don't believe there would be a lw stating an employer cannot hire someone with such a history.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
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    #6

    Jan 15, 2015, 09:42 AM
    My 'shouldn't be asked' was ambiguous. I meant not likely.
    My brief experience with laws of one state had no mention of this question. Only the distinctions among arrested, indicted, and convicted for criminal offenses.
    kcomissiong's Avatar
    kcomissiong Posts: 1,166, Reputation: 276
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    #7

    Jan 18, 2015, 10:52 PM
    As the others have said, you will likely not be required to reveal it on an application, which generally references only criminal records. However, it is increasingly common to undergo a credit check as part of your pre-employment screening, especially if you work in a position where you handle money and billing, and your bankruptcies will show up there if they were within the last ten years.

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