What is a Bankruptcy, Insolvency and Credit Check?
A bankruptcy, insolvency and credit check is a broad search and check of the financial solvency and credit history of an individual or company. These checks provide information about the financial viability of the individual or company, including whether they have been declared bankrupt or insolvent in the past, or had any major credit issues. These checks can therefore provide insight into the way that this person or company manages (or mismanages) their finances to inform your decision making process.
Bankruptcy is a situation where an individual or entity has been legally declared as unable to pay their debts to creditors. Insolvency refers to the state of an individual or entity being unable to pay their debts owed within the given timeframe.
In some circumstances, individuals who have been declared bankrupt may not be allowed to hold positions of responsibility. A person can also be disqualified from taking any direct or indirect roles in the management of a company due to bankruptcy. Our bankruptcy and insolvency search confirms whether a candidate is disqualified under these provisions.
Our credit check search reveals details of a candidate’s negative credit history that may provide insight into a candidate’s sense of financial integrity and financial responsibility, and reveal potential risks to your organisation.