Help! I have just found out my director is personally bankrupt!

missymoo69

i have just founf out my director is bankrupt and owes 373k!!!! He is the director of a company that has been going down the pan for some months now, where does this leave me i have only been here since august 2010.

He pays me late every week and i am looking for another job but because i habe two school age children part time work is hard to come by where i live.

Isn't it illegal to trade if your personally declared bankrupt???


Any advice would be great!

richardw

It may be his spouse who is the director.

magenta22

How did you find out this information? Was it published for all and sundry to see?

As you have said you are looking for something else, I would continue to do so and not mention anything to the Director unless he says something. He may be extremely embarrassed over it.

As someone else said, he may not be the 'owner' of the company and just an employee, in which case unless it's a financial role I don't think that it would be anyone's business his personal finances - I could be wrong.

If he is the company owner and it does pan out that way, you would get some sort of package to tide you over but not actual redundancy pay.

anamenottaken

If he is bankrupt, it may be that he is barred from being a company director - but he may have the title Director but not formally be a director of the company.

Private Limited companies (Ltd) need have only one Director.

He and the company are separate (even if he owns it 100%) and there is a state scheme to pay employees (up to a weekly limit) if a company fails.

missymoo69

he had his son as director but changed it to himself, i have asked him he was embarrassed but he said he can carry on trading as he is not the director, i asked who was he said no-one at the moment.

Hammyman

missymoo69 wrote: »

Isn't it illegal to trade if your personally declared bankrupt???

No. It is only illegal to trade if the Official Receiver says. He may be barred from being a company director but that is only for a set length of time from the date of the bankruptcy.

Hammyman

missymoo69 wrote: »

he had his son as director but changed it to himself, i have asked him he was embarrassed but he said he can carry on trading as he is not the director, i asked who was he said no-one at the moment.

Maybe he is now trading as a sole trader or a partnership, either of which he can do and neither of which need a director.

DVardysShadow

missymoo69 wrote: »

i have just founf out my director is bankrupt and owes 373k!!!! He is the director of a company that has been going down the pan for some months now, where does this leave me i have only been here since august 2010.

He pays me late every week and i am looking for another job but because i habe two school age children part time work is hard to come by where i live.

Isn't it illegal to trade if your personally declared bankrupt???


Any advice would be great!

What mileage is there in this for you? You might be able to get him defrocked as a director assuming he is a proper director and not an employee. But will this bring in your pay on time? Or will you be happy with just the 'satisfaction'?

If it is the satisfaction you want, leave dobbing him in until you have another job sorted out, because the way you are going, you are likely to find yourself out of a job and with a fight to get your finishing pay.

missymoo69

its not about dobbing anyone in, im not like that, he has now been taken off as a director because I did it on web filing yesterday (as he asked me to) no-one is a director at the moment.

All I want is paying on time I have 2 children and xmas is only 2 weeks away.
But if the Company did fold where would I stand as i have onlybeen here since August 2010, im really worried i am loking for another job I have been for months but I can only work part time and in this particular area because of my girls.

what do i do, do i leave when i get another job or stick it out? I really dont know what to do for the best

magenta22

I think you have answered the question yourself, you are worried about the security of your job so then you should look for another.

To be honest, his personal finances are not really your business.

skylight

His personal finances do not necessarily compare to the state of the company. Just because he has gone bust at one point, it doesn't mean that the company will so try not to worry about it; which is easier said than done especially as he has been paying you late!

You have said you are already looking for another role. If you are that unhappy and concerned then you need to redouble your efforts and shave your personal budget now just in case.