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Will My Employer Be Notified If I Go Bankrupt?
Question:
I currently work as an Account Handler for an insurance brokers, and thinking of applying for bankruptcy as I am pregnant and cannot afford to pay my debts. Will the OR tell my employers? We are regulated by the FSA. There is nowhere in my contract stipulating I have to tell them I am bankrupt nor any details of consequences. I worried about losing my job whilst pregnant and will not be able to support myself.
Answer:
There is no need for the receiver in your bankruptcy to contact your employer and advise them you are bankrupt and to our knowledge this is not done as a regular practice in bankruptcy.
The receiver may have a NT or no tax code placed on your wages which has any taxes you would pay for the bankruptcy; you do not owe taxes but the taxes you would be paying then go to the bankruptcy.
If someone in your payroll department understands this they may know you have gone bankrupt.
If there is nothing in your work contract regarding advising them of going bankrupt and you are not under the FSA rules for working and being insolvent, then it should not matter if your employer knew you were bankrupt or not.
Thank you for letting me help you.
Jon
If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.
Source: Will My Employer Be Notified If I Go Bankrupt?