Reply to: Bankruptcy and Contracting

[BA to the Stars]

And if he structures his income this way to avoid his earnings going to pay off his creditors, and the OR finds out, he can expect some jail time.

tim

However if the contract is awarded to YourCo Ltd, then income from contract is payable to YourCo Ltd and not Mr B Ankrupt who just happens to be an employee of YourCo Ltd.

I am not saying it is not immoral, if anyone has debts, why should his creditors suffer and I hope that I am never in this posistion.

As always though, I would suggest advice from professionals whose job it is to know about these things i.e. accountants, solicitors, etc.

[Jubber]

Any job/contract with a financial client will involve a credit check these days.

Really, well mine is very overdue as I've been here 18 months (massive American Financial Organisation)

I think they are looking for defaults/bankruptcies/etc

How would this differ from say .... 60 Gs of unsecured credit.? If someone on the boards actually knows why these checks are completed rather than guessing perhaps they could share.?

Not sure it's worth turning down a lucrative option on the libertarian principle.

I have nothing to fear on my credit record at all and I never used to get excited about this sort of thing, but I'm starting to. Would I turn a contract down because of it.? Can't honestly answer that at this moment, but this sort of sleepwalking into totally unnecessary nosing winds me up.

[HairyArsedBloke]

I was reading the other day that an increasing number of employers are doing these credit checks. Then it occurred to me that as we go into a slower economy a greater number of people will have black marks against them. The result of a recession could mean a whole generation of very capable but unemployable people. It’s a good job that there is a near infinite supply of migrant workers to take their place.

[tim123]

If money is paid to a limited company of which you are an employee, the OR cannot touch the funds within the limited company, it is a seperate legal entity. It is you personally who is bankrupt, the OR may be able to go after your income (including dividends).

Best bet is to speak to an accountant and possibly also a solicitor specialising in bankruptcy / insolvency

And if he structures his income this way to avoid his earnings going to pay off his creditors, and the OR finds out, he can expect some jail time.

tim

[Dow Jones]

Std process

Any job/contract with a financial client will involve a credit check these days. This doesn't mean you have to have an excellent record - mine is no more than average, I think they are looking for defaults/bankruptcies/etc. Not sure it's worth turning down a lucrative option on the libertarian principle.

[NotAllThere]

In over ten years of freelancing I've never been credit checked. Except possibly as part of security clearance.

There are other high paying industries other than the financial, you know.

[Jubber]

be aware that anywhere decent will do a credit check on you, and you will fail and won't be taken on.

Huh.? We're back to that old chestnut again are we.? I've worked in plenty of places 'decent' (and indecent too ) and have never been credit checked.? Who's credit checked you and for what.? Did they want to lend you a few grand before you signed the contract.?

[dude69]

be aware that anywhere decent will do a credit check on you, and you will fail and won't be taken on.

[NotAllThere]

Rounds of taxi cabs - that is an expensive habit.

[Jubber]

.... nothing to do with the fact that every time he was out on the town, completely spannered and with no money left in his current account, he'd whip out his business Visa and use it to buy rounds of shots, vindaloos, taxi cabs etc.

Yes, alcoholism can often lead to bankruptcy

J

[lambrini_socialist]

Who was it said that most successful businessmen have been bankrupt at least once?

it was a mate of mine, he was talking about Richard Branson who i think went bust a few times. my mate's online retail business went badly t!ts up due to "market conditions" or "bad luck" or something - nothing to do with the fact that every time he was out on the town, completely spannered and with no money left in his current account, he'd whip out his business Visa and use it to buy rounds of shots, vindaloos, taxi cabs etc.

[BA to the Stars]

Does anyone know if this is correct and if so, how do you determine what to pay me as an employee, bearing in mind that if there is any money left over, the OR will take 70% of the excess.

If money is paid to a limited company of which you are an employee, the OR cannot touch the funds within the limited company, it is a seperate legal entity. It is you personally who is bankrupt, the OR may be able to go after your income (including dividends).

Best bet is to speak to an accountant and possibly also a solicitor specialising in bankruptcy / insolvency

[basshead]

Who was it said that most successful businessmen have been bankrupt at least once?

Angus Loughran?

[NotAllThere]

I don't see how this differs from the normal one-man-band ltdco model. The only difference is the wife is the director. He can get a small salary and perhaps dividends - the rest going to his wife.

The money that goes to the OR - is that just his fees, or does it go towards settlement of the original debts? ( I'm just thinking that while the bankruptcy might not be his fault, it's also the case that it isn't his creditors fault either, so avoiding paying the OR might have a moral cast to it ).

[BrilloPad]

Who was it said that most successful businessmen have been bankrupt at least once?

I think it was a bankrupt businessman.