Will I lose my job if I go bankrupt?
Declaring bankruptcy is not an easy step, but unfortunately, the stress of taking such a step doesn’t end when the papers are filed and the court grants your petition. Going bankrupt could have a substantial impact on your work, your home, and if you run a business, your company, assets and employees.
So, will you automatically lose your job when you go bankrupt?
Generally, the answer to this question is no. Most of the time you’re not legally obligated to tell your employer unless your employment contract says you must. However, there are exceptions to this rule.
If you do lose your job because of the bankruptcy and set out to find another, places that perform background checks like security firms, the police or the civil service might not want to employ you, or if they do they can stop you handling financial issues.
If you’re employed in a role handling financial matters, such as working in a bank, you may have to inform your employer if you go bankrupt. Your employer may have the right to end your employment if this is the case. If you work as an insolvency practitioner you would be banned from working in the role.
If you’re employed in regulated professions that require you to be licensed, going bankrupt could disqualify you from remaining in the professional body. This affects people like accountants, solicitors, as well as certain financial professions.
You’ll also be banned from working as a company director, charity trustee, judge, registrar, MOT examiner or credit licence holder until your bankruptcy comes to an end. However, if the official receiver extends your restrictions, you can’t hold office in local or national government, become a magistrate or school governor.
If you’re specialised to work in the gambling industry, your licence will automatically lapse. However, you may be able to reapply to the Gambling Commission for another.
If you’re not sure if your line of work would be affected by bankruptcy, check with your employer. This especially applies if you’re in the armed forces, you work in medicine, as a pub licensee, in cash handling, or you can check with the government to find out what happens if you’re self-employed.
Applying for bankruptcy is a tough choice, so you should arrange a consultation with specialist and impartial debt strategists. Bell & Company are easy to get in touch with and will endeavour to answer your questions fast and provide advice on what avenues are best suited to your needs.