tad_admin Staff asked 8 years ago

does his employer need to know or are they told by the insolvency organisation.

2 Answers
answered 8 years ago

Given your husbands type of employment, it is unlikely that going bankrupt will have an effect on it and your husband’s employers will not be contacted by the Insolvency Service. However should your husband get an ‘Income Payment Order’ as a result of going bankrupt the Inland Revenue are likely to contact his employer requesting a change of tax code.

answered 8 years ago

Bankruptcy is recorded on a public register held by the Insolvency Service and can be viewed at their website but they will not notify his employer. Your husband may need to check the terms of his employment to see if bankruptcy has any impact on his employment. Whilst he is subject to the bankruptcy order HM Revenue and Customs (HMRC) will usually apply a 'nil tax' code for the rest of the tax year in which he declares bankruptcy. HMRC applies nil tax codes for various reasons, and the new tax code will not tell his employer that he is bankrupt. This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you need further help, Debt Advice Foundation provides a free, confidential helpline and can advise you. Click here to find out more.