Do Bankruptcies Show up on Background Checks? Expert Tips

Cindy Ellis - April 30, 2025

Ever wonder what kind of information pops up when someone runs a background check on you? Most people think of criminal records or employment history, but did you know your financial past can show up too? One of the most common questions people have is whether or not bankruptcies show up on background checks and how that information might affect their future.

In this article, we’re going to explain everything you need to know about bankruptcies and background checks. We’ll talk about what a background check is, what kind of information it can show, and how long that information stays on your record. We’ll also discuss how different types of background checks are used, and what factors on a background check will impact your chances of landing a job, renting an apartment, or even securing a loan

Do Bankruptcies Show up on Background Checks?

The short answer is yes, bankruptcies can show up on background checks. However, it depends on the type of check and how recent the bankruptcy is. Most background checks that are used for employment purposes will include a credit report, and bankruptcies are usually included on credit reports for up to 10 years.

However, not all bankruptcies will show up on every background check. Some checks might only focus on criminal records, while others are more comprehensive. If you’re worried about a bankruptcy showing up on your background check, we recommend reviewing the specific type of check being used. 

Types of Background Checks

There are a few different types of background checks, each with its own purpose and focus. Criminal background checks are the most common. These will look into someone’s arrest and conviction records. If you’ve ever been arrested or convicted of a crime, it will probably show up on a criminal background check.

Another type of background check is an employment verification check, which basically verifies your past employment history. It can confirm your dates of employment, job titles, and even your reason for leaving a previous job.

Finally, there are credit checks. These checks look at your financial history, including your credit score, payment history, and any outstanding debts. Landlords are the main users of credit checks to assess a potential tenant’s financial responsibility before agreeing to rent to them.

You might also see an AHCA background screening, which is a type of background check used in the healthcare industry. It’s specifically designed to assess the suitability of healthcare professionals for employment. To accommodate the strict requirements in this field, these screenings will have a criminal background check, verification of education and licenses, and sometimes a drug screening.

What About a Level 2 Background Check?

A Level 2 background check is a more in-depth look into a person’s past. It’ll include information from criminal records, credit reports, bankruptcies, and social media accounts. Depending on the specific job or industry, there are certain types of information that might disqualify you from a Level 2 background check. For example, a conviction for a felony crime can disqualify you from working in law enforcement or healthcare.

How Long Do Bankruptcies Stay on Background Checks?

The length of time a bankruptcy stays on your background check depends on the type of bankruptcy you filed and the laws in your state. In general, Chapter 7 bankruptcies will stay on your credit report for up to 10 years, while Chapter 13 bankruptcies will stay on your credit report for up to seven years.

It’s important to note that while bankruptcies might stay on your credit report for several years, they don’t necessarily stay on your background check forever. Once the bankruptcy is no longer reported on your credit report, it’s also going to be less likely to show up on a background check.

If you’re worried about how long a recent bankruptcy will stay on your background check, you can contact a credit reporting agency or an attorney for more specific information. They’ll help you understand your situation and walk you through the steps you can take to improve your credit score in accordance.

Do Bankruptcies Disqualify You From Everything?

No, bankruptcies don’t automatically disqualify you from everything financially and employment-related. It’s true that bankruptcy can be a red flag for some employers or landlords, but it doesn’t mean you’re automatically disqualified from getting a job or an apartment with one on your record.

Keep in mind that bankruptcies are often a result of difficult financial circumstances. Many people who file for bankruptcy are doing their best to get back on their feet at the same time. If you can explain the circumstances that led to your bankruptcy and show that you’ve taken steps to improve your financial situation, you’ll still be able to get a job or accommodation.

However, it’s also important to be realistic. Some employers or landlords can have strict policies regarding bankruptcies for their own reasons. If you want to improve your chances of being approved, it’s a good idea to be upfront about your bankruptcy and offer additional information or documents to prove your current financial stability.

Understanding Background Checks

Bankruptcies can play a significant role in background checks, but they’re just one of many factors that employers and landlords consider. Other relevant information that can show up on your background check includes:

• Criminal Records: Any arrests or convictions you have will likely appear on a background check. The severity of the offense and how long ago it occurred will probably affect how much it impacts your chances of getting a job.
  
• Evictions: If you’ve been evicted from a previous rental property, it’s likely to show up on a background check. Landlords will usually take eviction history into account when screening new tenants.
  
• Negative Credit Information: Adding on to bankruptcies, other negative credit information, such as late payments or collections, can also show up on background checks. If a job or rental requires financial responsibility, all of this information will play a big role in the screening.

What you do on your socials can also play a role in background checks. Employers and landlords sometimes use social media to learn more about you and your character. Typically, background checks will show a basic summary of your socials as well, or at least include a link to them. It’s essential to be mindful of what you post online, as anything you share could potentially be used against you.

It’s important that you’re aware of and understand all the information that can be included in your background check. If you’re still concerned, it’s a good idea to request a copy of your background check and review it to make sure it contains accurate information. You may also be able to dispute any inaccurate information in case it does show up.

Airbnb and Background Checks

If you’re planning to rent an Airbnb, be aware that the hosts might conduct background checks on you. This is especially true if the host is someone who rents out entire homes or apartments. This isn’t to say that every Airbnb host will perform a background check on their guests, but it’s certainly something to keep in mind when you’re booking a stay. 

Take Control of Your Background Check

For anyone who’s worried about their background check, there are a couple of steps that can be taken to improve their chances of getting that job or rental. First, start by reviewing your credit report and disputing any errors. If you have any outstanding debts, this is the time to pay them off too.

If you have a criminal record, you might be able to get it expunged or sealed, which essentially means that the record will be removed from public view. However, the process for expunging or sealing a criminal record is often pretty complex, so it’s important to consult with an attorney if you choose to go this route.

Finally, remember that a background check is just one piece of the puzzle. A negative background check is certainly a hurdle to get over, but it doesn’t necessarily mean you’re completely out of luck. It’s important for you to explain the circumstances surrounding any negative information an employer or landlord might see and show them that you’ve learned from your mistakes.

Bankruptcies Are Not the End

Background checks can seem like a daunting process to go through, especially if you have no idea what shows up on them or if you are worried that a bankruptcy will be viewable on this report. However, once you understand what’s involved in a background check, you can start to prepare accordingly. 

Remember, bankruptcies and other negative information can definitely show up on your background check, but it doesn’t mean you’re automatically disqualified from everything you are applying for. Take steps to improve your credit score and understand your rights, and you’ll be able to navigate the background check process with a lot more confidence.