We are often asked the question ‘Will the Official Receiver tell my job I’m bankrupt?’ The answer is no, but if you went bankrupt earlier in the year (February / March) your company would definitely not be aware of it. The reason for this is that your tax code would not change to NT as is usually the case in bankruptcy, as there would be no time to set up the processes.
Its often very difficult for hard working honest people to overcome what they really consider to be a shameful personal experience such as bankruptcy. The reality is that sometimes a bankruptcy is essential in order to stabilise out of control financial circumstances. Really you shouldn’t let opinions of others stand in the way of something you need. Otherwise you are risking further personal suffering when all you are looking for is a fresh start.
If you went bankrupt after April 6th, the Insolvency Service would advise HMRC to instruct the company you work for to change your tax code to ‘NT’ or no tax (without providing a reason as to why). The tax you would have paid is redirected to a different source and used to offset administration costs and to distribute among the creditors. This arrangement ceases at the end of the tax year and your tax code reverts to whatever it was.
Feel free to call us with any other questions or for bankruptcy help on 01425 600129, we are here to help. Our staff are ex-financial services and have the experience to get you the best result every time. We look forward to hearing from you.