Bankruptcy - Employment Implications

DeeDee_5

We are scheduled for a bankruptcy hearing on 23 October (a lifetime away, it seems) and one thing is still unclear - will I lose my job?

I am a restaurant manager; the bankruptcy form states that directors/owners of companies, and those involved in the managment of comapnies/businesses are affected. I assume I count among these? Although not a director, I am a manager, although arguably of a site rather than a company/business.

If there's anyone there who can advise, or has been in a similar situation, I'd love some guidance :rolleyes:

mrslawrence2003

DeeDee wrote:

We are scheduled for a bankruptcy hearing on 23 October (a lifetime away, it seems) and one thing is still unclear - will I lose my job?

I am a restaurant manager; the bankruptcy form states that directors/owners of companies, and those involved in the managment of comapnies/businesses are affected. I assume I count among these? Although not a director, I am a manager, although arguably of a site rather than a company/business.

If there's anyone there who can advise, or has been in a similar situation, I'd love some guidance :rolleyes:

what does your employment contract say about bankruptcy (if anything)?

DeeDee_5

I don't have a written contract, which I realise is silly. I was more concerned about the court making me give up my job - not sure what my employer's feel to be honest

CLAPTON

the bankruptcy restrictions do not apply to a restaurant manger; the restrictions are meant to apply to 'director' level jobs with formal legal company positions.
merely being a manger in a company is not a problem

i'ld be surprised if your employment contract had a bankruptcy clause but you need to check ... if you deal with significant amount of money then maybe it might do.

mrslawrence2003

CLAPTON wrote:

the bankruptcy restrictions do not apply to a restaurant manger; the restrictions are meant to apply to 'director' level jobs with formal legal company positions.
merely being a manger in a company is not a problem

i'ld be surprised if your employment contract had a bankruptcy clause but you need to check ... if you deal with significant amount of money then maybe it might do.

mine does - and you really wouldnt expect it to for what i do.

also - isn't it illegal to not have a written contract?

rog2

The BR will be reported, usually in local press and London Gazette.
Whilst, in theory, it should not affect your job, it will probably be best if you tell your employers, rather than them finding out about it from someone else. If you are open with them, they are less likely to jump to any wrong conclusions.

Dolly_Smith

I suppose it might make a difference if you deal with the finances in any way - if something went wrong it could be blamed on you whether it was your fault or not, and then not disclosing it may become a problem

Broker_2

I think it is important to understand your problem rather than create what if's. From what I gather you are worried about losing your job. You do not have a contract therefore you have no obligations to tell them. You need to earn a wage. Your employer would get involved I think if you were ordered to pay back money in the form of monthly payments. This would be docked from your salary directly I believe. Check it out though, as it is paid somehow if you get ordered too. I would wait to see what your hearing decides before you make any statement to your employer. You may want to test the waters out by asking questions that may give you a clue to their reaction. It could be along the lines that you read in a magazine that so and so.......etc. Who reads the London Gazzette? You would appear in a small entry in one issue only. (there are five issues a week mon -fri). You can check insolvency online for free, just type in the name. Its useful to check this after discharge as you will then know that when your name does not list anymore, you are off the register. For this to happen, the judge has to stamp the papers - you are not told automatically that you are discharged. As for your local newspaper, the only time you would appear in that is once and that is to let others know who have a claim against you and who to contact so that they can register their claim and get on the list of creditors to be paid when your estate is valued. These are usually companies that have gone bust rather than private individuals. Check the local paper yourself. Good luck.

Goldielocks

Taken from the Insolvency website:

What are the restrictions on a bankrupt?

The following are criminal offences for an undischarged bankrupt:

1. obtaining credit of £500 or more either alone or jointly with any another person without disclosing your bankruptcy. (Note: this is not just borrowing money - it includes your getting credit as a result of a statement or conduct which is designed to get credit, even though you have not made a specific agreement for it. For example, ordering goods without asking for credit and then failing to pay for them when they are delivered);

2. carrying on business (directly or indirectly) in a different name from that in which you were made bankrupt, without telling all those with whom you do business the name in which you were made bankrupt;

3. being concerned (directly or indirectly) in promoting, forming or managing a limited company, or acting as a company director, without the court’s permission, whether formally appointed as a director or not.

4. You may not hold certain public offices. You may not hold office as a trustee of a charity or a pension fund.


No.3 should be of interest to you. A restaurant manager does not fall into that category. You are entitled to earn a living! You are not under obligation to inform your employer unless you work in an area where it is stated in the bankruptcy that it is not allowed....(for example, if you were a MP you would not be able to continue doing that job).

One thing to note though. If when all the figures are worked out, it is found that you have a disposable income (usually over £100 a month) - you will be expected to make a monthly contribution to the creditors. This is in the form of an Income Payment Agreement (IPA). It is 'agreed' between yourself and the Official Receiver (OR). If you disagree with their figures you can contest it and it may go to court to be decided in which case it may turn round to bite you on the bum and you end up getting an Income Payment Order (IPO) - i.e. you are ordered to pay!

With the IPA, you make the contribution out of your monthly salary. With an IPO, I believe the OR can make arangements for the money to be taken out of your salary directly from the employer. In this way - your employer is going to know what is going on!

Also you will get given a Nil Tax (NT) code on your salary. Again - payroll may get a sniff of what's going on if they see that, although there are other reasons for a NT tax code aside from bankruptcy.

G

MinnieSpender

mrslawrence2003 wrote:

also - isn't it illegal to not have a written contract?

No - it's not illegal as a contract does not have to be a written document.

A definition is:

contract 1) n. an agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration.

Further information here: http://legal-dictionary.thefreedictionary.com/contract

Of course, it is always advisable to have a written contract, but they fact that they pay you (and, I hope, provide wage slips!) is proof enough.

Broker_2

At least not having a written contract in your case means you have not signed any specific terms that you are bound to that would terminate it if breached. For e.g a clause where you would have to disclose any bankruptcy and you did not would be a breach in the contract.