Bankruptcy and job in banking industry

[late49er]

Hello Everyone,

I have a friend who is a branch manager with a major bank and recently went through a bankruptcy because of a failed business venture.

She is now afraid that if her bank founds out about the bankruptcy she will be fired.

I am not sure what to tell her. On one hand she has a responsible position and handles a lot of money yet her bankruptcy is understandable and is not bank related.

Any idea on what will happen if the bank founds out? And if they found out in several years will they terminate her. Is she better off to quit now and just get into another line on work?

[Flamingo]

Does she have an employment contract with the bank? If so, she needs to review the contract for a possible clause that states if she should file for bankrtupcy, she would have to inform the employer. If she does not have an employment contract, she is an "at will" employee. that means the bank can fire her for any reason and she can leave for any reason. The bank cannot fire her just for filing bankruptcy.

The only thing that woud hurt her is that if she had that clause in her contract and did not inform her employer. Otherwise, there is no reason to tell her employer unless she just wants to - that is her own personal choice.

[despritfreya]

Tell your friend she is worried over nothing. She is not losing her job at the bank due to her filing bk. If she does and she can prove it she will have quite the suit against the bank since that would be a violation of 11 USC 525. In addition she is not the 1st nor the last employee of a financial institution to file bk.

Des.

[late49er]

One thing that is bothering me though.

I know she could not get a job in the banking industry with this problem.

Doesn`t the bank have a responsibility to its customers and its stockholders to not allow a person who has serious financial problems to not have access to huge sums of money.

I am afraid they can fire her because of the possibility of her stealing money.

[tcreegan]

Hi late49er,

...if she just went through a BK and didn't steal any $$...isn't that a confirmation of her honesty?

despiritfeya gave you the answer, but I will expand it for you....

11 USC § 525. Protection against discriminatory treatment

(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt--

(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act;

(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or

(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.

[momofthree]

One thing that is bothering me though.

I know she could not get a job in the banking industry with this problem.

Doesn`t the bank have a responsibility to its customers and its stockholders to not allow a person who has serious financial problems to not have access to huge sums of money.

I am afraid they can fire her because of the possibility of her stealing money.

Thankfully bankruptcy will help to solve her money issues and lower her risk of embezzling money from her employer.

[IBroke]

Looking at the big banks and their CEOs, I'd say having filed for BK counts as an additional qualification.

Sorry, but I couldn't resist..

[late49er]

Hello Everyone,

Thanks for your help.

This is a difficult time for her and I have passed on your ideas. I know she is an honest person. Far more than the folks on top of those places. I know she said shortly after she filed for bankruptcy they put her in a far smaller bank and it seemed really odd since she has a great employment record.

Since then it seems they watch her more closely. Guess maybe they are trying to run her off.

[ccsjoe]

She needs to review her emplyment agreement and the employee handbook, find out if there is any mention of bk and what action she needs to take or not. If she feels she is being discriminated for the bk and there is nothing in writing, then she needs to start documenting all instances meticulously in order to build a case for a potential suit. "Trying to run her off" would consitute harassment. Seems to me if she watches her back and documents everything, attempts to go though HR with her concerns (documented, show good faith, etc) and still gets screwed over, she will have a beatiful suit on her hands. Just my opinion.

[backtoschool]

The banking and financial services industry is notoriously bk adverse. As a branch manager of a bank, unfortunately the bk could affect employment. Credit checks are usually not performed regularly after employment, but if she ever gets promoted, etc there might be cause for concern, as a new background check might have to be performed. Employees who handle money are usually required to have periodic credit checks unfortunately. I am not sure I would advise her to be honest, since the policy may be corporate policy, and her immediate supervisors, etc may not have any control as to whether they can keep her with a bk on her records.

I would tell her to assume that at some point it might come up, to have an explanation ready, and to hope for the best, but be prepared to be let go if she handles money directly.