@The Pentacle Queen,
You should do three levels or pages. You must make the best of a bad situation.
1 Do a Resume with your degree. Companies and experience such as company names and what you did like teaching piano. Don't mention bankruptcy or anything.
2. Write down a list of students and the company crook.
3. Write the reason for reference from employer.
1. Employers usually never proceed to step 2 until interview time.
2. At the interview they MIGHT ask for students names not likely. You are not a criminal so relax so they are not going to nosey around all the foul deeds in your life.
3. They might ask why there is no refernce letter so you mention that he absconded with your money.