Yes, a bankruptcy will show up on a background check. Bankruptcies appear on a consumer’s credit report for a maximum of 10 years. However, federal law prohibits employers from making an adverse hiring decision because of a bankruptcy.

The Fair Credit Reporting Act (FCRA), which sets forth laws on employment background checks, permits a bankruptcy to appear on a consumer credit report for a maximum of 10 years. However, the FCRA prohibits employers from discriminating against applicants because they have filed for bankruptcy. This means an employer cannot forgo hiring you simply because you’ve declared bankruptcy in the past.

You may ask yourself, why would a bankruptcy affect my ability to get work anyway? The reality is that an increasing number of employers are using consumer credit reports to reduce risk in the hiring process. Many employers believe, fairly or not, that a consumer credit score is indicative of personal character and predictive of job performance. To that end, many employers are excluding job candidates on the basis of bad credit. Although many states are taking action to prevent this type of employment screening, employers in many other states are still using credit delinquencies as a factor to exclude prospective employees. That being said, bankruptcy is off-limits throughout the United States as a criterion for job eligibility.

If you’d like to see if a bankruptcy or other delinquency appears on your credit report, you can conduct an online background check today. Prepare yourself for your next job screening process and learn what’s in your background check now.