My story begins some years ago. Seven years ago I started my studies and did Physics and Mathematics. At the time i suffered depressions on and off, and the symptoms really told; I could vary between acing my exams and failing miserably depending on which state I was in. I told the head of department about the situation (lets skip the reason why). As a result, it was spread around and today most departments know about it, either from him or having seen it themselves. My studies failed; this culminated in me having to interrupt my Masterstudies in the middle of the project. (The bachelor project in itself went rather well). Some courses were unfinished.
My grades vary but are nowadays mostly good; after a while I learned that while in the slumps there is no use to take the exams and so I took them only when feeling good. As a result I have today, with some few exceptions, what must surely be a honors degree (mostly A- och B-grades and some Cs, one or two Ds). (This after cleaning up some old unifinished courses when I was in a better shape some two or three years later.)
Since two years or so, I have been essentially depression free and my life is good. I function, handle school, the social life and everything well. Within some months I will finish a Masters project in Mathematics and I feel good about it. My supervisor always gives me alot of good critizism/feedback about how I write my work and I get the feeling that the work is converging towards something of a quality that is not bad at all.
However, as most departments have heard, I have had the depressions, and I by chance ran into/overheard when one senior employee passed this information along as I went from one department to another. As a result I have some enemies and no department would take me in for a PhD. I was told by my supervisor that I should forget a PhD at my current Mathematics Department. He was however, optimistic when I mentioned studying abroad. I have not talked too much with other people about studying abroad for a PhD (although now when I am essentially healthy, this is what I want). I think about consulting the other people about LOR for abroad PhD studies.
What are my chances of getting a PhD with this back-ground? If my adviser writes me a LOR, will he be forced to mention my depression background? (He is well aware of it). Do you expect general reluctance towards recommending a student like me?
Is it ethical of them to pass this information on? Should I decide that I want to report this, what are common venues to pursue this?