March 27th, 2007 by Questions
One of our clients is an employer who has an employee who is currently an undischarged bankrupt. This employee has worked extra time and is entitled to additional pay. This would be surplus income to the bankrupt person.
The employee has suggested to his employer that this additional income be banked, to be paid after the employee is discharged from bankruptcy. This would probably be a problem for this employee when it came to be discharged as they would not have reported all their income while a bankrupt. In short, the employer would be wise to instruct the employee that this banked time arrangement would not be acceptable.
Is it correct that the banking the additional time would not be an acceptable procedure for the bankrupt employee?