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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In many cases it doesn’t matter. However, employing someone with a history of money problems represents a potential risk in, say, the Financial industry, or in a position where they handle large sums of cash or merchandise, since they would have incentive to steal.
Similarly, a bankruptcy or high level of debt represents a problem if your job requires you maintain a Secret or Top Secret clearance, since conventional wisdom is that you would be more susceptible to foreign agents offering cash for secrets. It’s why the CIA and FBI have traditionally done a disproportionate amount of their recruiting at Ivy League universities — the thought being that students whose families can afford to send them to Princeton or Yale are financially established enough that they don’t need the money, per se, and will work more for love of country.
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