Does filing bankruptcy affect getting a license to practice law?

Answer 1

Yes. You can even get a discharge and keep your license to practice. The exception would be if you owe a client money that was in an IOLTA account (for unearned retainers and funds held in trust to complete some transaction). That would lead to sanctions.

Answer 2

It can be a complication, since authorities do an extensive background check on applicants, and "financial responsibility" is one area looked at before granting a license to practice law. Its not an automatic denial of your application, but you will be required to provide information about your BK case- when did you file, case number, creditors, debts owed, debts paid, etc... You will also have to explain why you had to declare bankruptcy. If it was due to something beyond your control (such as health problems, job lay off, etc...) then it shouldn't be a problem. If it was because you signed up for 5 credit cards, maxed out each one, and then declared BK, that might be an issue. At worst, it would lead to a denial. At best, it would require an interview with court/state officials where they ask you questions concerning your BK (applicants with no issues on their backgrounds are not called to interviews). I am writing specifically about the CA state bar, but i cant imagine a state that does NOT require a showing of financial responsibility (i.e. run a credit report/check).