bankruptcy and employment contract

Hi,

The banks threatened repossession last week:

Back in November they wrote to me offering what they called a restructuring.

I couldn't see any difference and along with other bank letters I ignored it.

Seems maybe they were extending the life of the mortgage ie repayments over a longer time.

Anyway they are now saying that I missed the opportunity to work inside the MARP and I am now going into ARA because 4weeks and 25 days have elapsed.
(I don't get a second chance)

But my question, in my job, there is a clause: that a condition of my employment being terminated is if I go bankrupt.

So what are the chances of my (private sector) being let go if I apply for bankruptcy?

Would the employer actively seek to enforce this?

Regards,

Depends on your employer / your profession.

I should have mentioned I work in the financial sector
I am just 1 month in the job

Why are you applying for bankruptcy?

You have been ignoring the banks for some reason which is not clear.

(I don't get a second chance)

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A second chance to ignore all the correspondence again?

You seem to be acting completely irresponsibly from your own account of the story.

The bank will repossess but they are unlikely to make you bankrupt.

Brendan

Rodger

How many mortgages have you got at home and abroad ?

Did you sell abroad ?

Brendan to answer your question: I am constantly reminded by the banks about how much arrears I have. The sad reality is that I have barely enough to pay the next month nevermind the arrears.

When I say ignoring bank letters it is only letters demanding payment of the arrears: that is all the bank sends me.

I presume the bank knows this but has never ventured any option. Not only could I not make the repayments on the investment property : the interest only period is coming to an end. So what I'm saying is that radical re-structuring is required for this to be viable ie interest only for another 10 years.

I had one meeting EVER in person with this bank (parent company) in September (even though I was a customer for 10 years) which should remain nameless (?) in which this manager guy started shouting at me and telling me to get legal advice.

What happened Nov/Dec is that I got some legalistic form which after reading again seems to have offered to capitalise 3k in arrears and extend the life of the mortgage by 8 years. This isn't something that I asked for and isn't something I can see the advantage of. Particularly over 3k.

The arrears are starting now because the 10 years interest only arrangement is ending. The bank isn't offering anything other than extending the life of the loan.
They didn't give any proposed amounts so it was difficult to figure out what it meant.
My opinion is that if they wanted to be helpful they could have invited me in and discussed what options might work.

I have since got legal advice which is recommending insolvency.

Billo: to answer your question: they abroad property is now for sale.

By the way to ask my original question again: will the employer even know if I declare bankruptcy ? Does bankruptcy get registered with the employer at the payroll stage?

Thanks

By the way to ask my original question again: will the employer even know if I declare bankruptcy ?

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No. Nothing to do with them.

Does bankruptcy get registered with the employer at the payroll stage?

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No.

Time said:

No. Nothing to do with them.

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While this may be technically correct I would still seek some advice. In the UK, if you work in financial services and are registered with the FCA they need to be informed (also, if you move job you generally have to declare this on the paperwork and if you lie, and are found out, you could be in a whole world of hurt).

Not sure what the regulatory bodies are like in Ireland, but I would definitely do some digging. Doesn't mean you can't stay in employment, as they will examine every case on a case by case basis but still, don't mess with your future employment prospects too much.

Generally if you work in the financial services sector and are insolvent to the extent that Court action is being taken against you, you are obliged to report this to your employers. Failure to report is a dismissable offence. I don't want to appear alarmist but I am in that sector myself and have seen employees dismissed on that basis. If you make your employees aware of your financial difficulties, they are generally sympathetic and have resources to try and assist you. If legal action is commenced, you should advise your superior or HR department.

Time said:

No. Nothing to do with them.

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It most certainly has - there are certain jobs within the financial services sector that can not be held by a bankrupt and consequently it is a condition of the OPs employment contract.

Bankruptcy is a matter of public record and the OP can expect that his employer is subscribing to a service which monitors these things.