Employers and Bankruptcy

Zed1_2

Hi there,

My job propspects are about to improve in the next few months but I am currently considering bankruptcy (£36,000 debt will be paid off in 21 years on current repayment plan!). Does anyone have experience of employers actually running checks on whether their potential employee is a bankrupt?

Or what experience does anyone have of becoming bankrupt whilst in employment - where do your wages get paid if your bank account is closed? And how does your employer react? Do you have to tell them? Anyone had any very negative reactions from their employers?

any advice in this area would be great! Thank you!!!

Richard_S

Zed1 wrote:

Hi there,

My job propspects are about to improve in the next few months but I am currently considering bankruptcy (£36,000 debt will be paid off in 21 years on current repayment plan!). Does anyone have experience of employers actually running checks on whether their potential employee is a bankrupt?

Or what experience does anyone have of becoming bankrupt whilst in employment - where do your wages get paid if your bank account is closed? And how does your employer react? Do you have to tell them? Anyone had any very negative reactions from their employers?

any advice in this area would be great! Thank you!!!

Hi Zed,

It will depend on what your profession is as to whether it's affected by bky, and also on the employer. I actually work as a financial accountant, not in public practice, and my employers were very sympathetic, there were various procedures to be followed but no complications.

As far as salary is concerned I had mine paid into my daughters bank a/c in the two months before and then switched back to an account in my name after the bky hearing; it was a new account so didn't bend any rules.

I don't think you're under an obligation to inform yr employers, again will depend on yr contract of employment, but if you receive an NT (No Tax) Code then chances are they'll find out anyway.

Regards

Richard

Zed1_2

Hi Richard,

Many thanks for your reply, very useful. Did you have any problems opening a new bank account once you were bk?

I don't think that my debts are ever realistically going to be paid off in anything less than decades, so I think that I will be going bk, but it's a matter of when. My issue is (A) bk now, before I start my new career, then be open new employer if/when the instance arises, or (B) wait until I have my new career (then won't have to even discuss bk with employer) and then go bk - I am assuming wil have to tell employer when that happens anyway?

What are your personal feelings? (A) or (B)??? Hmmmmmm

Thanks

Richard_S

Zed1 wrote:

Hi Richard,

Many thanks for your reply, very useful. Did you have any problems opening a new bank account once you were bk?

I don't think that my debts are ever realistically going to be paid off in anything less than decades, so I think that I will be going bk, but it's a matter of when. My issue is (A) bk now, before I start my new career, then be open new employer if/when the instance arises, or (B) wait until I have my new career (then won't have to even discuss bk with employer) and then go bk - I am assuming wil have to tell employer when that happens anyway?

What are your personal feelings? (A) or (B)??? Hmmmmmm

Thanks

Hi Zed,

Both my Wife and I were declared bankrupt at the same time and we opened a joint account at Nationwide that was opened while we were in the branch. We were completely honest but didn’t offer any information that wasn’t specifically asked for; I like the old saying “always tell the truth but don’t always be telling the truth”. My wife then opened a basic account with Barclays and again no problem, they’re basic accounts, cash cards only, no debit card or cheque book; the Nationwide is more flexible because it includes internet banking. A lot of people on this thread have opened a Co-Op Basic account that includes an Electron card which is restricted in the number of outlets that accept it, but is better than nothing.

As for the timing, I think that’s a personal decision. I would rather get something painful over as quickly as possible so I’d go for option (A), the only thing you need to be certain about is that being bankrupt won’t affect your chances of securing a new career. The sooner you get it done the sooner you’ll be discharged and if you feel as though there’s no chance of sticking with your current payment schedule then the longer you delay it, the more you’re throwing good money after bad.

I would never recommend bky as an easy option or favour that course of action in preference to an IVA or a DMP. We were forced kicking and screaming into bky and did everything we could to avoid it, but with the benefit of hindsight I think we’ll both be pleased that things turned out the way they did; we didn’t even need to save for the fees or go through the “excitement” of going to court.

Regards

Richard

Zed1_2

Richard,

Many thanks for your reply. Glad to hear that things eventually turned around for you.

Regards

Zed1

Richard_S

Zed1 wrote:

Richard,

Many thanks for your reply. Glad to hear that things eventually turned around for you.

Regards

Zed1

Hi Zed,

Keep us posted as to how things go for you, it'll be the answer to somebody else's dilemma in the days/weeks/months to come.

Regards

Richard