Penniless and clueless
Question
I am finally free from bankruptcy after three years. Will my past financial record affect me getting a job?
Answer
Being discharged from bankruptcy (that's no longer being bankrupt) will affect your chances of getting a job. Are there are any Bankruptcy Restriction Orders (BRO) in place? If there are, the number of jobs available to you will be even fewer.
Someone who becomes bankrupt may find it difficult to work for certain employers in the future, for example, the civil service or a security firm. They may find it hard to get work where public service is involved, for example, in the police service. Alternatively, a bankrupt client will be allowed to work for certain employers, but may have restrictions placed on the type of the work they can become involved in. Bankruptcy, or being the subject of a BRO, might affect someone's ability to hold certain other jobs or positions. These include acting as an estate agent, solicitor or accountant.
It is a criminal offence for a client who is an undischarged bankrupt, the subject of a BRO or a bankruptcy restrictions undertaking to:
- Carry on business (directly or indirectly) in a different name from that in which they were made bankrupt, without telling everyone with whom they do business the name in which they were made bankrupt;
- Be involved in promoting, forming or managing a company without the court's permission, whether or not they are formally appointed as a director;
- Act as a receiver or manager of the property of a company on behalf of a debenture holder;
- Act as an insolvency practitioner.
In some cases, someone who is bankrupt will still be able to retain their position in certain jobs, but will then lose it if they become the subject of a BRO. This includes membership of the Houses of Parliament, acting as a local councillor or a school governor.
Although a bankrupt might be legally prevented from working, for example, as an estate agent or solicitor, they should consider whether bankruptcy will affect their job in any other ways. For example, a high street bank may not allow a bank manager to remain in their post. If someone is a member of the armed services, and becomes bankrupt, their commanding officer must be informed. This person may be discharged from the armed forces as a result of their bankruptcy.
If you would like further information about BRO's and employment after bankruptcy visit the insolvency service website.
Updated: 14/05/2008
Question answered by CAB
