Bankruptcy Filings Search

A Bankruptcy Filings search is a specialized federal-level check designed to provide a comprehensive view of an applicant’s financial background. This search is an invaluable tool for organizations looking to assess a candidate's financial accountability, risk level, and historical track record before placing them in a sensitive role.

What Does the Search Cover?

Unlike credit reports, which are maintained by private credit bureaus, bankruptcies are matters of federal public record. This search provides a 10-year inquiry across all 94 U.S. Federal Districts to reveal a candidate's history of federal bankruptcy filings. 

The search specifically identifies filings under the U.S. Bankruptcy Code, including:

• Chapter 7: Liquidation of assets.
• Chapter 9: Municipalities and local government restructuring.
• Chapter 11: Corporate or high-net-worth individual reorganization.
• Chapter 12: Relief for family farmers and fishermen.
• Chapter 13: Individual debt reorganization and repayment plans.
• Chapter 15: Ancillary and cross-border insolvency cases.

Bankruptcy Search vs. Credit Reports

Many organizations ask: "Why not just use a standard credit report?" While credit reports are excellent for viewing financial history from the perspective of private creditors, they may not capture all federal bankruptcy filings. Our Bankruptcy Filings search pulls directly from official federal court records, offering a specialized, public-record view that acts as a critical complement to traditional credit reporting.

How Does the Search Work?

Our team processes these searches directly through official U.S. federal court systems to ensure you receive the most accurate data.

1. Direct Search: We utilize the PACER (Public Access to Court Electronic Records) Case Locator (PCL), the official national index for federal district, bankruptcy, and appellate courts.
2. Identity Verification: Because the PCL acts as a broad national search tool, our team carefully sorts through any potential matches using your candidate's identifying information to determine if the bankruptcy definitively belongs to them.
3. Record Delivery: If a federal bankruptcy record is confirmed, the filing details will be populated directly on your Verified First report.

Who Needs This Search?

While any organization looking for a complete view of a candidate's background can benefit from this search, it is highly recommended for:

• Financial institutions, banks, and accounting firms.
• Organizations hiring for executive, C-suite, or fiduciary positions.
• Any role where an employee will have direct access to company funds, payroll, or highly sensitive financial data.

Why Make This Part of Your Screening Process?

• Assess Financial Responsibility: A history of multiple bankruptcies can serve as a warning sign regarding a candidate's financial decision-making and overall accountability.
• Mitigate Embezzlement Risk: Candidates facing severe, insurmountable personal debt or ongoing bankruptcy proceedings are statistically at a higher risk for committing occupational fraud or theft.
• Complete the Picture: When combined with a standard pre-employment credit check, a Bankruptcy Filings search gives you the most thorough, legally compliant view of a candidate’s financial track record.

FAQ

What candidate information is used to run a Bankruptcy Filings search? We use the candidate's full first and last name and their full Social Security Number (SSN) to accurately verify records against the federal index.

Are dismissed bankruptcy filings included? No, this search does not include dismissed filings. We only report bankruptcy cases where a discharge has been granted, as well as pending cases.

Do you offer bankruptcy filings with an unlimited scope? No, we do not offer an unlimited scope. We limit our bankruptcy filing searches to a 10-year scope to ensure strict compliance with the Fair Credit Reporting Act (FCRA), which regulates the reporting of non-criminal adverse information.

Do you offer specific district-level bankruptcy searches? No, we only offer a nationwide search. This approach allows us to provide the most comprehensive search results possible.

The information and opinions expressed are for educational purposes only and are based 
on current practice, industry related knowledge and business expertise. The information
provided shall not be construed as legal advice, express or implied. 

If you have any further questions, or need a product enabled on your account, 
please contact Verified First Client Services for assistance.

Call 844-709-2708 or email clientservices@verifiedfirst.com