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Hey guys! As a type A future law student wanting to ensure I understand as much as possible, I was wondering how the bar background check works. If it a normal background check (credit & criminal history), or is it like Federal security clearance checks where they also interview friends, family, and neighbors?

It is somewhat in between the two. You can see the form here: https://www.nybarexam.org/Admission/Apr ... .21.15.pdf

You also need notarized moral character affidavits from two people you know, preferably including one attorney. New York is unusual in that the character and fitness process does not begin until after you have passed the bar exam. They might contact prior employers and educational institutions, but they shouldn't interview your neighbors or anything like that.

Finally, New York includes a personal interview before you are admitted. But this is typically a 30-second perfunctory interview. Federal security clearances are denied for all sorts of reasons, whereas it usually takes a lot to fail the bar's character & fitness process. Unless you have something fairly serious to disclose, you shouldn't worry too much about it.