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| xmas baby |
Posted - 24 November 2008 : 15:32:49
Hi all,
I have a question if anyone can help? My employer provides the option of a season ticket loan, which is paid monthly direct from my pay and arranged through my employer. If I am declared bankrupt, would this be affected in any way? As far as I am aware, my employer provides this service and I am in no way connected with regards applying for credit, apart from the agreement between myself and my employer to repay a monthly amount from my pay. I also have a Government Purchase Card, which I have been given by my employer to enable me to make purchase solely for work purchases. Again my employer ensures payments are made and I have no repayment responsibilities in that respect. However, as the card is issued to me and is in my name, although I do not pay the bill, would it be affected if I was declared bankrupt? By the way, the card is also issued by one of my creditors.
Thanks for any advice you might be able to give me on this matter.
Keith |
| 5 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 24 November 2008 : 16:45:31
Hi Keith
it makes absolute sense but if the onus is on you to recover the remaining value in the ticket, in the event of your leaving the company, rather than your employer, then I would suggest that to the OR that would be deemed as you having a loan from your employer as your employer has already paid in full.
My point being if the ticket actually belonged to your employer and you were just a named user, then it would be your employers responsibility to reclaim the unused proportion of the ticket cost and you could then argue that you were not in a loan situation but, rather, "pay as you go".
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| xmas baby |
Posted - 24 November 2008 : 16:37:06
I renewed my season ticket on 3rd October for a further 12 months and my monthly repayments from my wages are £325. As far as I'm aware, if, for whatever reason, I no longer worked for my employer, I would be required to pay back any remaining money. This would be done by me submitting the season ticket back to the rail network and them paying me back any money remaining on the season ticket. Basically, I have paid back £325 so far from £3900, so I would be looking at the rail company reimbursing around £3575, which I would then need to return to my employer. Does this make sense?
Keith |
| John |
Posted - 24 November 2008 : 16:29:27
Hi
ok. Re the season ticket, when does the current ticket expire? How much are you paying each month? And what would happen if you resigned from your job tomorrow, only part way through the season as it were?
Would you be liable for the balance according to the agreement with your employer or would you hand the ticket back to the employer and immediately become no longer responsible for any further repayment?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| xmas baby |
Posted - 24 November 2008 : 16:23:41
Many thanks for your reply, John.
I am a little worried about the season ticket loan as you mention that I might have to declare that on the bankruptcy. I was under the impression that my employer is the actual person responsible for this loan and they provide this service as a 'benefit' for their staff. I do make monthly repayments direct from my pay and this is interest free. I did sign for the advance, but I think this was an agreement between myself and my employer rather than the loan company itself. By the way, the season ticket loan is for an annual card worth £3,900. As far as the credit card is concerned, I believe my employers are the account holders and I am just the authorised card user (hence my name on the card). I provide monthly reconciliations to our Finance Department on any transactions made and they duly pay the credit card company accordingly.
Thanks again for your help and advice. It is much appreciated.
Keith |
| John |
Posted - 24 November 2008 : 16:12:10
Hi
the season ticket loan is, after all, just that, a loan and as such should be included in your bankruptcy. That said, it would be a foolhardy examiner that put your employment at risk by insisting the money is not repaid.
As the funds are deducted at source, and they are directly in paymet in order for you to get to and from your place of work I would say you'll be able to argue that one successfully and if you receive any resistance stand your ground.
Also if the season ticket is more than £500 as long as your employer knows of your bankruptcy the fact that you have "borrowed" this some does not contravene any bankruptcy restrictions.
Re the card:- If the card is in the account of the company and you are an additional cardholder then the spending is not your legal liability.
Therefore neither the OR, or the card provider, should have any problem with this.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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