Many employers these days run background checks on job applicants, particularly for higher level positions. However, many people file for bankruptcy because of illness, a period of unemployment or other legitimate reasons. Be prepared to answer any questions truthfully, and then transition the conversation in a way that enables you to explain how the company can benefit by hiring you. Often our prospective clients’ concerns regarding bankruptcy revolve less around financial issues and more about issues relating to who will find out about their bankruptcy, and what they will think. This is understandable. Shame about excessive debt is almost universal, and almost everyone has experienced it. The truth is, though, that few people learn about others’ bankruptcies, and more and more people understand that bankruptcy is a valid, effective and commonly used solution to debt. In addition, bankruptcy laws protect parties from taking adverse action against a person because he or she filed bankruptcy. For instance, bankruptcy laws include a specific provision prohibiting employers from discriminating against employees because they have filed for bankruptcy. And while bankruptcy actions are reported to credit agencies, they are not reported to local newspapers or otherwise generally broadcast.