I was watching a tv show where a character had to declare bankruptcy. She was told that she was required by law to disclose this to her employer. I’m not sure how much of this is based in fact, but if you had a lot of debt, wouldn’t it be beneficial for all parties involved to allow that person to keep earning an income in order to reduce that debt?
For added context, this was an Australian show so I’m not sure if these laws apply elsewhere, let alone Australia.
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Jobs with a security clearance do similar things, though they wouldn’t fire you because you declared bankruptcy, they fire you because you don’t handle your debts. Now what that means is if you decide to stop paying your car loan and mortgage, and tell the debt collectors to pound sand, they’d probably fire you, you have these massive debts that you’re not dealing with, they may eventually force you into bankruptcy, and that’s going to be bad for you. If on the other hand your health insurance lapsed, and then you had a heart attack, and have $750k in medical bills that you owe that you just can’t pay, and you opt to declare bankruptcy to clear it, well in that case, bankruptcy is the way that you are legally dealing with the debt, and that’s not a problem.
So really, bankruptcy is a sign, and they look into the why, if you just can’t stop buying things you can’t afford and run away from people collecting, you’re not dealing with your problems and that is an issue. If you got a one off debt due to circumstances largely outside of your control (loss of job, medical issues, accident, etc), and you clear it with a bankruptcy, well that’s fine.
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