Quora Answer: If I Claim Personal Bankruptcy, am I Ineligible to Work in Venture Capital or Private Equity?

The following is my answer to a Quora question: “If I claim personal bankruptcy, then will I be ineligible for a job in venture capital or private equity?” 

If you are an undischarged bankrupt, it is unlikely you will get a job in any part of finance.  You will fail compliance requirements, and will not be allowed to work anywhere close to any position that manages funds.  You could conceivably work there, but perhaps in marketing, or some form of administration work.  You will never sit on the investment committee, or make partner. 

If you are a discharged bankrupt, your prospects increase substantially.  That being said, it would be difficult for you to secure the required financial licenses to be a consultant, relationship manager or anything front end.  You would have to declare the circumstances of your previous divorce.  Medical bankruptcy is not a thing where I am from, because we have near universal healthcare.  It is unlikely that a divorce settlement would lead to bankruptcy here due to the way assets are divided here.  In most cases, it is personal debt.  That sort of impropriety is unlikely to move the regulatory authorities to grant you a license.