Bankruptcy

[Caspar]

Re: Bankruptcy

Be careful of google. Not all true, or at least outdated as the law has changed.

School Governor Not true
Headteacher - Would have to check....

School Governor was definitely true up until July this year. When did the law change? I've stayed pretty in touch with education since I retired as a Headteacher and haven't come across this law change. Obviously getting out of date!

HT is one where it would stop you getting the job, but would not necessarily mean you lost your job, though your governing body would have the right to terminate your contract.

[Nibbler]

Re: Bankruptcy

School Governor was definitely true up until July this year. When did the law change? I've stayed pretty in touch with education since I retired as a Headteacher and haven't come across this law change. Obviously getting out of date!

Here: Part 2 - Restrictions imposed on bankrupts by other legislation

25.25 School Governance (Constitution) (England) Regulations 2003 (as amended by the Education (Disqualification Provisions: Bankruptcy and Mental Health) (England) Regulations SI 2006/2198

An undischarged bankrupt is not disqualified from holding office, or continuing to hold office, as a school governor

[Sapphire]

Re: Bankruptcy

You can add Public House Licensee to the list.

[Caspar]

Re: Bankruptcy

Here: Part 2 - Restrictions imposed on bankrupts by other legislation

A person is disqualified from holding or from continuing to hold office as a governor or associate member if he or she:

· · is subject to a bankruptcy restriction order or an interim order;


Taken from School Governor Guide to the Law December 2009

[Nibbler]

Re: Bankruptcy

A person is disqualified from holding or from continuing to hold office as a governor or associate member if he or she:

· · is subject to a bankruptcy restriction order or an interim order;


Taken from School Governor Guide to the Law December 2009

Yes. But an bankruptcy restriction order (BRO) is not the same as just a bankruptcy order.

It used to be that if you are made bankrupt that you could not be a school governor.

However, that amendment changed the law so it's only if you are further subject to a BRO (http://www.insolvency.gov.uk/pdfs/gu...etspdf/bro.pdf) that you are barred from being a governor,

It's easy to get the two mixed up.

EDIT. A few other restrictions went the same way. i.e. only apply now if you are subject to a BRO.

[Caspar]

Re: Bankruptcy

Thanks for clearing that up - what is the difference? It's not something I've had to deal with but would like to know out of interest. I knew I'd read about it as I still do bits and pieces in Education Employment Law, not normally of this type though, mine is to do with appointments and when there are disciplinary or competency proceedings taking place on the whole.

Very glad to be corrected thank you - thought I was losing it for a minute!:3560_7606:

[Nibbler]

Re: Bankruptcy

The bankruptcy order itself is what the court/judge issues to make you bankrupt.

A Bankruptcy Restriction Order/Undertaking is an additional measure that was brought in by the Enterprise Act 2002.

Basically, from that factsheet.

What is a Bankruptcy Restrictions Order (BRO)?

If the official receiver considers that a bankrupt has acted dishonestly, or is blameworthy in some other way, they will report the facts to court and ask it to make a BRO. The court will consider this report and any other evidence put before it, and will decide whether it should make a BRO. If it does, you will be subject to certain restrictions for the period stated in the order.

This can be from 2 to 15 years.

It's only a very small % of people who will get one of those. You really do have to have been dishonest or very reckless.

So for most people, they will not get a BRO/U.

As said, things such as being barred from acting as a school governor, being a local councillor etc... used to happen simply by you being declared bankrupt.

However, the law change now means that those restrictions only apply to people who receive a BRO/U for misconduct/dishonesty etc on top of that.

Presumably the intention was to make the placement of restrictions fairer. i.e. that they only apply to people who were dishonest, or reckless rather than the average person who had some bad luck.

[Jester]

Re: Bankruptcy

Being bankrupt, or even simply on an IVA, can be a problem if you try to work in the banking sector. I know that whenever I work on accounts in the banking sector with my company, the bank in question will often ask you to sign a declaration stating that you are not bankrupt or on an IVA.

However, governmental roles (including those in the armed services) do require Security Clearance and they will ask all about your financial affairs. I can't comment on bankruptcy, but I do know that a lot of questions were asked when I applied for Security Clearance 18 months ago because I have an IVA. However, because the IVA proved I am putting my financial affairs in order they decided to grant my Security Clearance - but to regulalrly review it. I still hold that security clearance.

I think that it all boils down to whether you are seen as being vulnerable to being financially coerced to be honest. We have all seen stories of people performing illegal acts due to being coerced by outside forces into doing so or simply being corruptable.

So, I suspect the reason why some professions will not employ bankrupts and the like is purely down to that reason. You ARE seen as a risk - and rightly so in my opinion. It may sound harsh, but if you think about it, most companies have to do risk assessments on the possibility of being embezzled or other such crimes, so it only makes sense that they have to likewise on any employee they potentially might take on.

[Skaatiii]

Re: Bankruptcy

Agree with the above post absolutely! Local Government Officers are not allowed to have debts (Ha!) are not allowed to have more than one job (unless sanctioned by CEO) and are certainly not allowed to work after being declared bankrupt. It's to do with the LG Financial regulations and was definately T&C of employment - stated (cant remember wording) something like..... Could be at an increased risk of being persuaded to commit blackmail, fraud, embezzlement etc and vulnerable to impeding Official capabilities due to external pressures... Most Managers are relaxed about the rule and it may have changed under employment law (equality etc) but as far as I am aware its still in the literature

[tiger1]

Re: Bankruptcy

When is your discharge date ? I was discharged after 12 months of becoming bankrupt. There is a sense of relief but I still have a bad credit file. Now I am calling and writing to some creditor's on my credit file to ask them to update my file to show the debts as satisfied because the debts formed part of my bankruptcy.

[CleverClogs]

Re: Bankruptcy

I did try MSE, but found some to be a little judgemental for my liking..

That'll probably be through the link with BSE. :rofl:

[Nibbler]

Re: Bankruptcy

Agree with the above post absolutely! Local Government Officers are not allowed to have debts (Ha!) are not allowed to have more than one job (unless sanctioned by CEO) and are certainly not allowed to work after being declared bankrupt. It's to do with the LG Financial regulations and was definately T&C of employment - stated (cant remember wording) something like..... Could be at an increased risk of being persuaded to commit blackmail, fraud, embezzlement etc and vulnerable to impeding Official capabilities due to external pressures... Most Managers are relaxed about the rule and it may have changed under employment law (equality etc) but as far as I am aware its still in the literature

I know of a couple of local government officers who have gone bankrupt without trouble and stayed in their posts.

One a finance officer in particular advancing the same year they did it, with their employer having full knowledge.

Things have moved on I think.