Contract and bakruptcy

[ASB]

They still put on their forms "have you ever been bankrupt" but don't tell you that after you have done your time you don't have to answer that.

It's a bit like the old "have you ever been convicted of" question.

Although there is no obligation to declare your bankruptcy if you say no and it turns up on the credit check it's a guranteed rejection for fibbing. Mind you if you say yes it is pretty much a guarenteed rejection anyway....

Surely an IVA would be better if possible (no gurantee of that of course).

[privateeye]

Surely a discharged bankrupt is less likely to be a risk because they have no debt burden - thus unlikely to be open to bribes etc.? Perversely it seems bankruptcy lessens life chances is a similar fashion to a criminal record; ironically something the process was designed to avoid - that of preventing people turning to crime to pay their debts.

You are right it does lessen your chances, criminal records are not made public but bankruptcy is. A bankrupt has a guarenteed advert put in the local press, it is also placed in a national such as London Gazette. A mortgage company is more willing to give credit to rapists and murderers than a discharged bankrupt. They still put on their forms "have you ever been bankrupt" but don't tell you that after you have done your time you don't have to answer that.

[privateeye]

I am in the process of selling my assets to cover my debts but might have go bankrupt or slave away for years to come. Can I still work as a contractor under an umbrella company if I declare myself bankrupt?

I went bankrupt in 1990 before I got into IT, there will be no problem with using a PAYE brolly as you are their employee not a Director etc. May even be ok using other types of brollies - its a bit grey there so check first. In short you are not allowed to be in any position that would allow you to get credit directly/indirectly.

You will also need to think of things such as gas,electric, phone as these are all generally sold on credit - so plan ahead for that eventuality as you will need to give them deposits etc to save getting any credit. Your bank account will be searched for large unusual transfers so think carefully about transferring any funds to relatives etc.

A lot depends on the Official Receiver, generally a personal bankrupt would do only a 2 year period as I did - I think the Official Receiver takes each case individually ie if you were unfortunate and/or foolish you will not be as harshly treated as someone who was a bit more deliberate in their methods of going bankrupt.

In my case I was a carpenter at the time, 2 major customers themselves went bankrupt and did not pay me. The IR however, still wanted the tax on what I was not paid and used their guilty until proven innocent rule to make me bankrupt.

Listen to what CAB or other advisors tell you - it could have a serious advantage on your life. I still had a sum of money in the bank and was advised that this would be confiscated and had already mentioned in a meeting with CAB that I thought I would leave carpentry and get into something else as the building trade collapsed in the early 90's - they told me to spend the money on a training course and to get a receipt with no-refundable on it. I've been in IT 15 years now and am in a far better position than had I carried on as a carpenter even without bankruptcy. As I still think I was unfairly bankrupted by the IR I have no problem with that - they tried to finish me off but I came back and haunted them when IR35 surfaced.

Even being a discharged bankrupt after 10 years stopped me getting security clearance - but who wants to work for EDS or Cap

[malvolio]

Two obvious problems - you've a slightly limited market since no financial institution will take you on (and that may include retailers who can service loans on behalf of other people) since you won't get past the requirements of the Financial Services act, and your own company is a no-no since you can't be a director while bankrupt.

So Agency Temp looks to be the best route if you can't get a permanent role.
Alternatively, you can work as a Sole Trader, if you can find the business.

[NoddY]

For what its worth in banking or financial services if you have been bankrupt you will find it diffcult to get another job in that area.

I know this for a fact as I only got my current contract because the chap they first offered the job to was not allowed to take it as he failed the credit check due to a previously being bankrupt.

Totally sucks in my opionion why should you credit history stop you working in IT at a financial insitution !

Surely a discharged bankrupt is less likely to be a risk because they have no debt burden - thus unlikely to be open to bribes etc.? Perversely it seems bankruptcy lessens life chances is a similar fashion to a criminal record; ironically something the process was designed to avoid - that of preventing people turning to crime to pay their debts.

[Ivor1]

For what its worth in banking or financial services if you have been bankrupt you will find it diffcult to get another job in that area.

I know this for a fact as I only got my current contract because the chap they first offered the job to was not allowed to take it as he failed the credit check due to a previously being bankrupt.

Totally sucks in my opionion why should you credit history stop you working in IT at a financial insitution !

[tim123]

Can't see any reason why you can't work through a PAYE brolly. A divident based brolly might be a problem.

You will, of course, have everything that the brolly gets, except the 200 quid pw that you are allowed to live on, taken away from you and used to pay off your debts though.

tim

[Mordac]

Try asking your local citizens advice bureau. I wouldn't rely on any advice you may get here, particularly with such a serious subject. Logic tells me they won't prevent you working, but you won't be able to get credit and they may well limit your spending (e.g. you will be expected to make a contribution to your creditors). Bankruptcy should be an absolute last resort, as you will need to declare it in the future, even after you have been discharged.
There is a good forum at http://www.moneysavingexpert.com/ tryasking on there.

[BlasterBates]

Sounds a bit grey as you can't set up a company. If you're bankrupt there will be assigned a trustee that will aministrate your assets. So I suspect you'd need to contact him. I also presume that he'll take all your earnings and give you some back to live on.

The advantage of a bankruptcy is that it the time is limited during which your affairs are administered.

I suspect if the trustee can see you'll be earning money he may act as some sort of intermediary as he would also be paid.

[Guerhon]

I am in the process of selling my assets to cover my debts but might have go bankrupt or slave away for years to come. Can I still work as a contractor under an umbrella company if I declare myself bankrupt?