question about restrictions on bankrupts

charlie's_mum

I have read about the restrictions on bankrupts - unable to be a Trustee, a JP, company director etc. Is this just for the period of the bankrupcy, or are these a lifetime restriction?

Conor_3

The Effect on Your Employment or Business
There are certain jobs you cannot have if you are an undischarged bankrupt: Company Director (or concerned directly or indirectly in the management of a company), MP, Councillor, Magistrate or Estate Agent. A bankrupt usually can't be a school or college governor and there are restrictions under charity law as to the role a bankrupt can serve on management committees.
Security firms may not wish to employ an undicharged bankrupt, particularly where money is involved. And the same applies to the civil service. The rules for professions such as solicitors and accountants make it virtually impossible for people who've been bankrupted to work in these professions.

fermi

charlie's_mum wrote: »

I have read about the restrictions on bankrupts - unable to be a Trustee, a JP, company director etc. Is this just for the period of the bankrupcy, or are these a lifetime restriction?

Virtually all are only while you are undischarged (at least the statutory ones).

As said, a few professions won't allow you to be a member of their professional body even after discharge, so these seem to electively barred for longer.

Broken_hearted

Unless asked outright you don't have to disclose your BR. Any company can refuse to hire a BR, most however don't even ask.

Lizzibuff

Broken_hearted wrote: »

Unless asked outright you don't have to disclose your BR. Any company can refuse to hire a BR, most however don't even ask.

I work at a school and we are in the process of setting up a new management committee for a ltd co that will manage a childrens centre. If i do decide to go BR do i have to tell them then or can i just wait to see if they ask?

Bearing in mind my head who is also on the committee will probably know.

wherediditallgo

The Insolvency Service site says it's a criminal offence for an undischarged bankrupt to be "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." You would therefore need the court's permission to be involved in setting up a limited company. I think you need to speak to your OR about this - if the company has already been set up, it may be viewed differently, but I think you'd be best off getting the OR or the court to clarify their position in writing.

Lizzibuff

OK Thanks WDIAG

2003wastheyear

ps large companies (banks) now use 3rd party's to check out applicants. I was turned down for a great job with a bank as they did a credit check on me. (Discharged 2004) but I have been accepted into the Foreign Office...

DavidLaGuardia

Some of the work exclusion seem wrong to me as being a bankrupt doesn't affect the ability of an individual to function effecitvely. Exclusions such as Comapny Director make sense for a number of reasons, but excluding all possible roles in the Civil Service is plain barmy and discriminatory.

wherediditallgo

DavidLaGuardia wrote: »

Some of the work exclusion seem wrong to me as being a bankrupt doesn't affect the ability of an individual to function effecitvely. Exclusions such as Comapny Director make sense for a number of reasons, but excluding all possible roles in the Civil Service is plain barmy and discriminatory.

If that's the case, I can see why. When I worked for the DHSS many years ago, I was classed as a civil servant & had to sign the Official Secrets Act. Unless things have changed since then, staff would still have to sign it today. If someone is BR, they're perceived as being more susceptible to temptation to sort out their financial problems. :rolleyes: In reality, they're probably no bigger a risk than anyone else, & having been through the mill once I can't see many people wanting to go through it again. Nonetheless, keeping them away from any form of administration involving government/local funds is seen as a way of protecting both them and the money.

debt_doctor

Hi, im a debt case worker for the CAB. Most of what is said on here is true about the restrictions, Although I didnt see the one 'you must not borrow more than £ 500 without informing the lender that you are bankrupt.

All the restrictions are during the 'undischarged bankrupt' period which is a maximum of 1 year, but often around 9 months under the early dishcharge rules.

The exeption to this is when the OR feels that the bankrupt has been in some way 'culpable', perhaps gaining credit where they knew or should have known they had no prospect of repaying. There has to be far more than mere suspicion.

If found so, the bankrupt can have a bankruptcy restriction order ( BRO) placed against them, which continues the ' undischarged restrictions' for a time between a further 2 - 15 years after discharge.

Most behaviors do NOT attract a BRO.

best wishes.