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madeve
Starting Member
United Kingdom
33 Posts |
 Posted - 15 March 2009 : 16:08:51
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Hello,
Can anybody tell me if your employers are informed of your bankruptcy? I cant see anything in my contract regarding this but dont want to tell them if I dont need to.
Also will my private landlord be informed of my bankruptcy, and if so can they evict us. There is a clause in our tenancy agreement about not being bankrupt but we are up to date on our rent and have no history of arrears. Our lease is a rolling one so if they wanted to could evict us with 1 months notice.
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John
New Member
United Kingdom
73 Posts |
Posted - 15 March 2009 : 19:21:43
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Hi
employers are not informed of bankruptcy as such.
However, if you are paying income tax then your employer will be instructed by the Inland Revenue to apply an NT tax code when your bankruptcy happens. It does not follow by applying this code that your wages dept will automatically know you have been made bankrupt as there can be other reasons for the code to be applied. Nevertheless they may suspect.
The OR will contact your landlord to check there are no rental arrears. Most rental agreements have a bankruptcy clause but the reality is that as long as you keep paying on time it is very unlikely your landlord will apply the bankruptcy clause and evict you.
It costs too much money in lost income for a sensible landlord to apply the bankruptcy clause especially if you are good tenants.
John White
England Jackman & Spacey |
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madeve
Starting Member
United Kingdom
33 Posts |
Posted - 16 March 2009 : 14:11:35
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Thanks john,
Is it true with the nil tax code it will only apply for the remainder of the tax year in which you petition?
For example if we were to petition in the nexy couple of weeks we would only get a nil tax code applied for a very short time (up til 06/04) or not at all, but if we petitioned after April 6th we'd have a nil tax code applied for the whole year?
Thanks |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 16 March 2009 : 14:22:00
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Hi Madeve, you are quite correct in that the NT Coding only applies for the tax year in which you go bankrupt, which is why far more people petition in Feb/March as there is not enough time for an NT tax coding to be applied, and thus employers finding out. The bankruptcy is advertised though in your local paper, which is sometimes how employers/colleagues may find out, but hey, todays paper is tomorrows chip wrapper... Is your job in the finance sector/dealing with other peoples cash, if not your employment should not be affected
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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madeve
Starting Member
United Kingdom
33 Posts |
Posted - 16 March 2009 : 15:13:32
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Thanks Melanie,
I work in financial services, we are an FSA regualted insurance company.
However i have no contact with cusotmers or their money - My role is one of staff development.
What, in your experience would BR mean in my case? |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 16 March 2009 : 15:29:06
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To be honest with you, absolutley nothing, if you are unsure give your HR a ring hypothetically pose the question on staff/bankruptcy/employment as their response will probably put your mind at rest far more than mine could, but i really don't see any difficulty - the difficulty usually arises where someone has a licence via the FSA such as mortgage brokers etc and for some strange reason croupiers, most employers these days though are far more relaxed about bankruptcy.
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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madeve
Starting Member
United Kingdom
33 Posts |
Posted - 16 March 2009 : 21:01:52
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Hi,
If i am put on a NT code - what happens to this money, does it go direct to the OR or will I get paid it and then have to pay it to the OR myself?
What if, even paying no tax I still dont have enough surplus DI for an IPA?
Thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 16 March 2009 : 21:29:58
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Hi
the tax you would normally pay is not deducted therefore received by you in your monthly cheque.
You must set this money aside and a collecting agent will be in touch to arrange for you to pay the money to them.
There are 2 types of IPA and neither one affects the other. The first based on your NT tax code and the second on Disposable Income.
With an NT tax code you must pay any money received that you would otherwise have paid in tax to the OR's collecting agent.
Irrespective of your I&E.
John White
England Jackman & Spacey |
Edited by - John on 16 March 2009 21:31:41 |
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Informing
