Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By sixpence
#267783 Hi I have been dealing with my debt problems myself and paying a token £1 per month ( for appx £40,000 debt on credit cards) for 3 yrs now as after contacting payplan I did not have enough surplus to pay into a DMP. My question will this effect my employment position as I work as a finance manager (last two years) will I have to tell my employer,if I tell my employer will they sack me? The thing is there were several personal issues in my life that lead to me being in debt and it has no relevance to my position in work. Some advice please :roll: :cry: :oops:
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By JaneClack
#267903 Does your contract of employment say you have to tell them of any money issues as so it should have no effect at all - and indeed if you have been doing this for a while and nothing has happened, why should it now? The same is true of bankruptcy as unless your job prohibits it they cannot sack you for it.
By rikw
#267933 Do you work in an FSA regulated industry such has insurance?, if not you don't have to notify your employers, unless stated in your contract. That was one of the main reasons I held back on going down that route, has it may have led me to a disciplinary
By Enty01
#267973 I work for a company regulated by the FSA and there is a clause in my contract stating that I should inform my employer in the event of becoming bankrupt.

I struggled with this one for a while as my job would have most definitely been at risk - I don't handle money and don't sell any finance/insurance related products - but because the company is FSA regulated the above clause is in all our contracts, regardless of our role within the company.

Our company handbook, with regard to bankruptcy, states that we have to be 'of good repute' and 'honest' which I find offensive - the fact that I had petitioned for bankruptcy doesn't mean I am of ill-repute or dishonest!

In the end I decided to keep quiet; I was aware that the Official Receiver doesn't inform your employer of your bankruptcy and bankruptcy is no longer included in the public notices of local newspapers, as it once was (just the London Gazzette)

The only way your employer may find out could be as a result of your change in Income Tax code - a NIL code is applied for the remainder of the tax year in which you are declared bankrupt.

I purposely timed it so that I petitioned for BR mid-March and there
wasn't sufficient time, or any point in the Official Receiver requesting a NIL tax code as there were only 2-3 weeks of the financial year remaining - hence my tax code remained unchanged/no instruction to employer from HMRC to apply a NIL tax code.

I am NOT advising/suggesting that you do the same - I am merely sharing my experience as someone in a similar position to yourself.