It is a known fact that the past decade’s rough financial situations have affected the lives of millions of Americans throughout the country. Many of them have filed for bankruptcy to manage excessive debt and keep their homes from being foreclosed. While bankruptcy provides financial relief to those looking to manage debt, many are concerned as to whether bankruptcy will remain a part of their financial background.
Furthermore, they may ask themselves how – if it appears on their credit report – that affect their lives moving forward. The California bankruptcy lawyers at The Bankruptcy Group invite you to keep reading as we discuss bankruptcy and background checks in California.
Will My Bankruptcy Discharge Show Up on a Background Check?
This is one of the most asked questions by people who have gone through a bankruptcy process. One of the reasons why this is a concern is because many people wrongfully believe their bankruptcy will be easily accessible to anyone and everyone who wants to know. However, the reality is very different.
Once you have completed the bankruptcy process, your discharge will remain on your background information for several years depending on the type of bankruptcy you filed for. For instance, if you file a Chapter 7 bankruptcy – also known as straight or liquidation bankruptcy – and successfully obtain a discharge, it will remain on your file for 10 years. This means the note on your file stating you went through bankruptcy will not disappear until the specified amount of years.
The same applies in cases where a consumer files for a Chapter 13 bankruptcy – also known as repayment plan bankruptcy. The amount of years your discharge will show under this chapter is lower than its Chapter 7 counterpart. If you filed for a Chapter 13 bankruptcy, your discharge would remain on your background for 7 years.
While this information will remain on your background, it does not mean people can easily have access to it. While a bankruptcy process becomes a matter of public record once you file for it, reviewing any public record of this nature requires a lot of effort from the party looking to find out if you went through a bankruptcy process. For instance, if an interested party wants to find out whether you filed for bankruptcy, they would need to go to a federal courthouse in your filing district and specifically look for it.
Most Common Types of Background Checks
Background checks are used by different entities to find relevant information about a person’s previous conduct. Specifically, different people like employers, sellers of goods – such as car and firearm sellers – and other entities perform background checks to know about a person’s past criminal record, employment history, and education, among other relevant information. Some of the most common types of background checks include the following:
Employment Background Checks
Employment background checks are prevalent. Generally, employers perform these background checks to see a complete profile of the potential candidate. For instance, an employer may run a background check to make sure the potential candidate for a job position is not a liability to the company due to past conduct.
Criminal Background Checks
Criminal background checks are commonly used by employers to make sure a potential candidate is safe to work at their company or business. Employers will mostly look at things like previous criminal convictions due to substance abuse, violent crimes, sex crimes, fraud, and other illegal activity that may impact workplace safety. Generally, these background checks cover a broad area that includes sex offender registries, criminal records at a state or national level, and other databases that can help them learn about your past criminal history.
Credit Background Checks
Credit background checks are performed every day in the U.S. These checks are performed whenever a party is interested in knowing about your financial behavior. By looking at your credit background, employers, lenders, and landlords can determine whether you will be able to keep up with your financial obligations. Bankruptcy is an item likely to appear in your credit background check. However, this does not necessarily mean you will automatically be rejected for things such as a job position. In most cases, you will need to consent to a background check before your potential employer can look into your financial past.
California Bankruptcy Attorneys Offering Free Consultations
If you or a loved one is facing financial difficulties and is considering filing for bankruptcy in California, we may be able to help. The California attorneys at The Bankruptcy Group have the necessary skills, experience, and knowledge to guide you through the entire bankruptcy process. Don’t let financial hardship take over your life. Let our years of experience handling bankruptcy cases work for you during this time of need. To learn more about your case in a free, confidential consultation with a California bankruptcy attorney, call our law offices today at 1-800-9220-5351.