Can bankruptcy hurt your chances of finding another professional job?

While there are laws which prohibit discrimination for race, color, religion, sex, national origin, age, disability, and political affiliation or belief; there are no laws which prohibit discrimination because an applicant (or employee) has filed bankruptcy. In fact, the absence of financial issues is a requirement for positions involving the handling of money, as well as those involving security concerns or professional licensing.

Answer

As a Recruiter, I was hiring Branch Managers who would be in charge of several thousands of dollars worth of equipment. Credit checks were performed and any candidate with a bankruptcy was immediately disqualified. Credit can be an issue when applying to join the police force, too. They are concerned that anyone with a lot of debt is more susceptible to bribery.

Answer

Here in Britain, having been bankrupt disqualifies you for police, military and civil service for four years and in that time you have to disclose your bankruptcy to any would-be employer.

If you went bankrupt trying to run your own business, then the experience would certainly still be a good selling point in an interview in the same field. A skilled interviewer would offer you the opportunity to say what you learned from the bankruptcy.

Answer

A bankruptcy will definitely hurt your chances if you are applying for a position that requires a military security clearance (I.E. - defense industry).  A recent bankruptcy (less than 4 - 5 years) makes obtaining a security clearance very difficult, and if obtaining a clearance is requirement of employment, then your odds of winning the job is nearly nil (regardless if you're an expert in your career). 

First answer by Matt. Last edit by Diego dog. Contributor trust: 71 [recommend contributor]. Question popularity: 235 [recommend question]