In the majority of cases your job will not be at risk if you go Bankrupt. However some roles could be affected.
Included in this article:
- Which jobs are affected by Bankruptcy?
- Go Bankrupt if you are self employed
- Can a Company Director go Bankrupt?
- Getting a new job while you are bankrupt
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Will I lose my job if I go Bankrupt?
Most jobs are not affected by Bankruptcy Are there any professions where Bankruptcy could cause an issue? What should you do if you are concerned about your job? To find out more please visit: http://beatmydebt.com/bankruptcy-frequently-asked-questions/what-will-happen-to-my-job-if-i-go-bankrupt
Which jobs are affected by Bankruptcy?
Most forms of employment including the Civil Service are not affected if you go Bankrupt. Your employer will not be told. As such they are extremely unlikely ever to find out unless you mention it to them.
However there are some specific areas where your job might be at risk. These include solicitors (you cannot remain a member of the law society), certain areas of financial services, Estate Agents, Haulage Operators, Politicians, and Pub Licensees.
Members of the Armed Forces and Police can go bankrupt. However before taking this step you should speak to your superior, HR or professional standard representative about your options.
If you are unsure whether Bankruptcy will affect your job or not you should check your employment contract or talk to your HR department.
Can you go Bankrupt if you are Self Employed?
If you are self employed your job is unaffected by Bankruptcy. There is nothing to stop you continuing to work as a self employed person. However there are certain restrictions.
The most important of these is that you are required to trade under the name in which you went bankrupt. This will normally be your own name.
You could also find that your banking arrangements are affected. You may have to close your business account if you owe the bank money. However you can normally open a new personal account and trade through that.
Can a Company Director go Bankrupt?
You cannot continue acting as a Company Director while you are bankrupt. In addition you cannot be involved in the management of a limited company.
If you are a director you will need to resign. You can still be employed by the company but you will have to move onto PAYE. If you are the only director of the business someone else will have to take on the role.
Your company bank account and facilities should not be affected. However if you are an owner director and you owe money personally to the same bank they will find out. As a result company credit facilities may be withdrawn.
Once you are discharged from Bankruptcy you can register as a director of any company once again.
Getting a new job while you are bankrupt
Generally speaking the fact that you have been bankrupt in the past should not affect your ability to get a new job. The majority of employers are not interested in whether you are currently bankrupt or have been in the past.
However this is not always the case. Some may not want to employ a bankrupt person for varying reasons. You should normally avoid a potential employer who specifically asks if you are bankrupt during the application process.
Some jobs may require you to have a clean credit rating. If this is the case remember that Bankruptcy will be recorded on your credit file for 6 years. As such you may not be able to take up these types of roles for some time.
If you have future aspirations in a specific career area such as finance you should find out in advance if bankruptcy will cause a problem. If so you may have to consider alternative debt solutions.
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4 thoughts on “What will happen to my Job if I go Bankrupt?”
I work as call handler for police. Due to unfortunate family circumstances we are now stuggling. What i need to know is if i went bankrupt would i lose my job?
I do not believe that you would lose your job if you go bankrupt. I have worked with a number of front line police officers who have gone bankrupt to deal with their debt problem and they have not had any issue. Given you are a call handler I cannot see that you would have a problem.
That said before you apply I would advice you speak to your manager or HR representative. You need to tell them you are considering bankruptcy and ask them whether there could be any ill affects. I am sure it will not be the first time they have had the conversation with a member of staff.
I own a Company where I am a sole Director. I may go bankrupt and I will resign as Director soon and the Company will be taken over by a Friend.
Can I stay as an employee in my Company if go bankrupt ? Can I stay as a signatory for bank accounts if I stay as an employee?
What happens to agreements that I signed under the Company before my resignation as Director and before my bankruptcy?
Please advise what is best for me.
I confirm that you are allowed to continue working as an employee of the company after you go bankrupt. Until you are discharged you must ensure that your income is just made up of wages based on PAYE. As far as the bankruptcy rules are concerned you are allowed to stay as a signatory on the bank account. However you might want to check with the bank itself. There may be implications if your personal bank account is help at the same bank as your company account.
If you sign any agreements as a director before you resign then generally speaking these are legal and valid.
The one thing you do need to watch is that one the assets of your bankruptcy will be any shares you own in your company. If the company itself has no value then this is not an issue. However if the company does have a book value then you may need to negotiate a sensible price with the OR to buy back your interest in the shares.