Bankruptcy while working for financial institution

carrot42

Hi,

how big is the chance that workplace would find out about my money mismanagements if I keep my mouth shut? Do I need to tell my employer or end client if I'm contractor for financial institution (let say bank) that I'm going bankrupt or this is up to them to monitor people who working for them?


Thanks!

CarterUK73

Out of respect to your employer or client, assuming that bankruptcy is a concern to them i.e. as an employee it might be a condItion of your employment contract that you are not made bankrupt, you should tell them.

MalMonroe

Honesty is always the best policy - I say that as someone who's been through a DRO. 

It's better if you tell people rather than them find out for themselves at a later date. I know how bad it feels to have to go bankrupt (or in my case, have a DRO) but if your work involves financial transactions and your employer or any client discovers the facts for themselves (it won't be difficult as your name, address and details of bankruptcy will be on the Individual Insolvency Register - which is free for anyone to search - for up to 15 months) it will be much worse.

More info in this link -

https://www.insolvencydirect.bis.gov.uk/eiir/IIRFAQ.asp#2

TripleH

Check your contract of employment. If you don't tell but are subsequently discovered to have become bankrupt at a later date, you might face disciplinary proceedings depending on the wording.

It also raises trust concerns because you hid relevant information from your employer.

fatbelly

You realise you will be on a public register?

warby68

High chance 

carrot42

The next lines are for the people from the future, so no need to reply if you don't want.

A month ago I signed a contract worth over 200k to provide my services to the bank we all know here via middle agency, however, I was a bit nervous because I was thinking that they most likely will run occasional background checks anyway and more important than that - this was still a temporary position, meaning that I'm going to stay with them for next 6 years or so, a year max, so I would be in position where I would need to look for a job again, so that would be not possible for that kind of money anymore. So I have decided to speak with the middle agency about my situation and was surprised in a way that the people didn't immediately hang the phone, they said that they will look into it because the situation is unique and on top of that - they are monetary incentivised for me to stay as they get the slice from the pie every month. However, not sure what they done, but I was informed that they want to cut relationships asap, a termination letter followed few mins later. So this is the price for the honesty, maybe if I could have done things differently, like keeping my mouth shut - the outcome most likely would be different, at least for some time, but then in near future there was a high chance that I would be in the same situation as I am today, however today I have enough saving to survive long enough to find something to weather all the storms, however, the money will be less than that, but as I understand, all spare income goes to debtors, so I guess earning BIG at this stage does not really matter apart from the bit that this may speed up repayment to debtors, however, in my situation doubt that they will ever be fully repaid.

I also noticed that in this country a bankrupt is at the same level as infected with hiv or worse. Pretty much everyone tries to stay away and avoid such person, not sure why, probably this is the culture, but whatever, I don't feel bad about myself because this is just one of those things in life which imho you feel bad about or you don't care and move forward which is what I chose by default

Sandtree

carrot42 said:

The next lines are for the people from the future, so no need to reply if you don't want.

A month ago I signed a contract worth over 200k to provide my services to the bank we all know here via middle agency, however, I was a bit nervous because I was thinking that they most likely will run occasional background checks anyway and more important than that - this was still a temporary position, meaning that I'm going to stay with them for next 6 months or so, a year max, so I would be in position where I would need to look for a job again, so that would be not possible for that kind of money anymore.

So you were a contractor on over £1,650 a day in the financial services/banking and yet know nothing of how contracting or financial service employment works? Curious of how you achieve such a rate with no experience.

In principle contractors are instantly disposable, its one of several reasons why on a cash basis contract rates outweigh perm salaries however companies won't bite off their nose to spite their face and someone with the rare skills to demand £1,650 a day can be shown more lenience unless either that there are other concerns and its just the straw that breaks the camels back or the company has an absolute policy that applies to both employees and contractors. 

Whilst I cannot command those kinds of day rates I have known people get into financial difficulties, be open with their employer and retained their employment. That same employer found others that hadn't been open and were dismissed/ the employee walked out without returning

carrot42

I don't know from where you got 1650, but it is not the right number and how I achieved it is a subject not for this forum as it is simply too big. The last bit what you wrote does not work and it makes sense why it can't. In my case the contract was new, even if I knew those people very well and in fact previously they were very satisfied with my work and been hunting me for the past year, however, I tend to conclude that their compliance/legal or even bank itself said that in such scenario they would need to fire me anyway and given the fact that I told the truth agency that I will most likely will go bankrupt in very near future, they decided to not involve in any risks and just terminate me.

Grumpy_chap

carrot42 said:

I don't know from where you got 1650, but it is not the right number 

It is from the earlier post:

carrot42 said:

A month ago I signed a contract worth over 200k to provide my services to the bank we all know here via middle agency, however, I was a bit nervous because I was thinking that they most likely will run occasional background checks anyway and more important than that - this was still a temporary position, meaning that I'm going to stay with them for next 6 years or so, a year max, 

£200k.
6 months.
£33k per month.
20 working days per month.
£1,650 per day.

The key thing in whether you needed to inform the employer was whether it stated so in the contract (though, I understand, this is a common type of requirement in the financial services industry).

I am also confused, as you told the employer about your bankruptcy, yet then said:

carrot42 said:

today I have enough saving to survive long enough to find something to weather all the storms, 

So, with savings and a high income, you are not actually bankrupt, so what did you tell the employer about.

sourcrates

carrot42 said:

I also noticed that in this country a bankrupt is at the same level as infected with hiv or worse. Pretty much everyone tries to stay away and avoid such person, not sure why, probably this is the culture, but whatever, I don't feel bad about myself because this is just one of those things in life which imho you feel bad about or you don't care and move forward which is what I chose by default

The financial services sector has a notoriously bad attitude to anyone going bankrupt, unless you happen to be one of the major players with oodles of clout and truck loads of cash.

Aside from that, most folk in what you would describe as "normal jobs" can carry on a near normal life these days without their bankruptcy status being a poisoned challis.

Because outside of the obvious positions where bankruptcy would mean dismissal, life goes on pretty much as before, because no one is that interested, or cares about it.

So your above analogy may still apply in some work sectors, but as a whole, society has moved on from that scenario, and a basic bankruptcy is a pretty simple option these days.