When you choose bankruptcy as an option at any period in your life, it can have a serious and costly effect on your job or business. When you are operating a business, there are specific restrictions that need to be followed. In some careers or professions, there is a bar against filing for bankruptcy. In fact, there are some employers that won’t hire you for that reason. So, before you decide to file bankruptcy, it is important to be aware of its impact on your business and job.
If you are employed with a company and you have been dismissed from your job due to filing bankruptcy and you think it is unfair, you may have a valid claim. However, your claim will only be valid, if the employer does not follow the specific procedure as it relates to your dismissal – even if the company is against filing for bankruptcy. It is best to get professional legal advice if you find yourself in such a position.
The Employment Contract
If you filed for bankruptcy while working for a company that is against such practice, you really don’t have to inform your employer about your decision. However, be sure to revisit the terms of your employment contract to see if there is a clause that determines whether you are responsible for saying anything to your employer or not. This is especially true, if you are employed in the financial industry or in a financial role.
If you are employed in a financial role such as working for a financial institution and your boss no longer thinks that you would be able to provide responsible financial counseling to clients, then you may have a problem of losing your job if you filed for a bankruptcy. Most financial institutions want their employees to demonstrate fiscal responsibility as an example to other co-workers and the clients as well. In other roles that are not related to finances, you may get off scotch free. If, however, your employment is with a specific regulated career that requires financial licensing or registration, filing bankruptcy would probably make you ineligible as a member of that profession or career. Some of these careers include attorneys and accountants. If you are uncertain whether this applies to you or not, it is best to check with the professional body of members. If you work with the gambling industry and you are a croupier or dealer, you may be required to maintain financial responsibility or your license from the Gambling Commission may be revoked.
The Other Effects
Let’s say you are not dismissed from your job for filing bankruptcy, you still have to deal with other issues such as:
· Difficulty in obtaining employment in the future a certain field or industry such as a police officer, government service or with a security company
· You may be restricted from carrying out certain tasks on the job
Think About It Carefully
In the case of operating a business and filing bankruptcy, you may have your business rights taken over by the bankruptcy trustee. For that reason, your business may be liquidated and closed down and your employees dismissed. Your business assets will be sold as well. Therefore, filing bankruptcy requires deep thought when you own a business or when you are employed in a certain field or industry.