With the current economic downturn, more and more people are looking for debt solutions in order to help them manage their finances.
Although bankruptcy can offer peace of mind, there are also many disadvantages and so it is important to consider alternatives such as: Debt Management Plans; IVAs; Debt Consolidation Loans. Please contact us on 0845 600 6980 to discuss your options in more detail.
Sometimes, you may be faced with no alternative but to petition for bankruptcy and in this situation, it is important to be aware of your employment rights and the affect that bankruptcy may have on your employment.
Once you have been made bankrupt, you cannot be a Company Director, a Chartered Accountant or a Lawyer. You can also not take part in the promotion, formation or management of a limited company without the permission of the court.
Unless the court makes a charging order, your wages will continue to be paid to you by your employer as normal. However, special rules apply for pensions and pension contributions.
It is always advisable to discuss your situation with your employer before they are contacted by the court and explain to them that the bankruptcy will not affect your ability to do the job. If bankruptcy does prevent you from carrying out your duties, if could be a potential reason for dismissal, however, you cannot be dismissed solely because you are bankrupt.
If you need advice about an employment matter,
contact Legal Advice Helpline on 0845 600 6980 to speak to one of our specialist advisors about employment law.