Bankruptcy while working for financial institution

fatbelly

Grumpy_chap said:

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

The OP said he was going to declare bankruptcy in the near future.

That must be a hell of a lot of debt

Grumpy_chap

fatbelly said:

Grumpy_chap said:

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

The OP said he was going to declare bankruptcy in the near future.

That must be a hell of a lot of debt

That's what I don't understand.

OP has savings and £200k every 6 months income.
The OP knew there was a risk of loosing job by informing the employer.
The OP "might" be at risk of going bankrupt - that "might" must mean there is some possibility of avoiding the bankruptcy.
By informing the employer in advance, they have brought forward an event that must now make the bankruptcy more likely.
You can't be judged for your future crimes that might never materialise.

Undervalued

TripleH said:

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.

Even if it is not specifically spelt out in the contract, there is still a duty to act in good faith towards your employer. Given that most (all?) financial institutions would want to know details of any bankruptcy etc before employing, it follows that they have a legitimate reason to know if the circumstances of an existing employee changes. 

phillw

Undervalued said:
Given that most (all?) financial institutions would want to know details of any bankruptcy etc before employing, it follows that they have a legitimate reason to know if the circumstances of an existing employee changes. 

It doesn't matter whether they might want to know, if they didn't put it in your contract then it's their problem.

Of course if a bankruptcy means that you are no longer allowed to do your job (for example, I believe a solicitor would have their practicing certificate revoked) then that would be a problem.

carrot42

sourcrates said:

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.

Thank you Soucrates. Your text exposes you as reasonable and well respected person.


I think the outcome is: if the work is about to be done or if the work is in progress and the industry is financial service and the person is about to get bankrupt, then imho it is just a matter of time before everything will be exposed and person will be asked to leave. How do I know? From experience, those reference check companies are exceptionally invasive nowadays, if you going for the TOP money for the well known financial firm, they want your reputation and background to be as white as white paper, but not darker.

Grumpy_chap

OP - what are the magnitude and cause of your debts?  In your other thread, you intimate the debts may arise because of a "loan-charge" type issue.  This could be a significant factor in how an employer in the financials services sector would treat an individual as your technical knowledge might well be deemed to be sufficient to know about the rules pertaining to matters such as the appropriate means of withdrawing funds from Ltd Co.

Also, in the other thread, you claim to have no assets (property / car) and the debt is around £200k - £250k and you have jewellery of £30k you could sell to reduce the debt.  Given you have an income rate of £200k every 6 months, some kind of payment plan approach would seem preferable to everybody than the bankruptcy (which of itself will destroy your ability to pay-down the debts).  Yet, possibly, this damage is done if you are not actually bankrupt but told the employer you might be.

https://forums.moneysavingexpert.com/discussion/6334916/high-flyer-about-to-land-hard-or-few-bankruptcy-questions