In many cases sequestration doesn’t affect a person’s job, and you may be able to carry on working with no adverse effects on your current or future employment situation. But because sequestration is a serious step to take, it’s worthwhile checking your employment contract for any clause relating to debt or bankruptcy prior to becoming sequestrated.
There are certain lines of work that will be affected by sequestration, however, and could result in the termination of your employment contract. In general, these areas include:
With regard to the legal sector and financial professions such as accountancy and auditing, the fact that these are highly regulated industries and require the individual to be licensed, often results in being barred from practice by their professional body.
There’s always a chance your employer will find out that you’ve been sequestrated because it’s a matter of public record. Details of all sequestrations are held in the Register of Insolvencies, which can be publicly viewed, and if you work in the previously-mentioned industries, one of your employer’s procedures might be to search the register periodically.
If you don’t work under an employment contract, or sequestration isn’t mentioned, you may want to ask your HR department about the rules in confidence, or to seek independent advice privately.
It’s worth remembering that other roles and offices may also be out of reach once you’ve entered sequestration, including:
One factor to be aware of is that, if your employer knows about your sequestration and you’re able to remain an employee, they may decide to amend or limit your job roles within the business.
If you’re self-employed or a sole trader, the trustee will assess whether or not you can continue to trade – if your business is able to provide an income that can be used towards your sequestration payments, it’s likely that you’ll be allowed to carry on.
One factor that can affect your ability to operate efficiently, however, is whether you can obtain credit if you need it from suppliers, as you’re expected to inform them of your bankruptcy.
Additionally, if you change your name in the future, in the interests of transparency you’re obliged to inform anyone you do business with of your name when you were sequestrated.
Scotland Debt Solutions has been helping Scottish residents to escape debt since 1989. If you’re worried about how sequestration might affect your job, call one of the team to arrange a free same-day meeting.
The government has introduced a range of measures to help individuals, families, and sole traders in Scotland who are struggling to cope financially due to the coronavirus pandemic.
When you apply for a personal loan it’s important to be open with the lender and tell them exactly what the loan is for.
Our Scottish based team can help advise you on your debt problems.