Can I continue working during insolvency?
July 13, 2022 | 40,00 EUR | answered by Katja Winterberg
Dear bankruptcy lawyer,
My name is Ingo König and I am currently facing the difficult situation of having to file for bankruptcy. Due to financial problems and a number of unpaid bills, I have no choice but to take this step.
My question is whether I can continue to work during bankruptcy. I am employed in a small company and would like to keep my job in order to secure at least some income. However, I am concerned that my bankruptcy could have implications for my job.
I am worried that my employer might react negatively if they find out about my bankruptcy. Are there any legal regulations that allow me to continue working even if I am insolvent? Or is there a risk that my employer will terminate me due to my financial situation?
I am willing to do everything in my power to manage my bankruptcy and keep my job. Please provide me with clear information and possible solutions so that I can better assess how to handle this difficult situation.
Thank you in advance for your support.
Sincerely,
Ingo König
Dear Mr. King,
Thank you for your inquiry regarding your insolvency and whether you can continue working during this time. This is understandably very important, as your job and therefore your income plays a crucial role in managing your financial situation.
In principle, it is possible to continue working during insolvency. There are no legal regulations that prohibit you from working just because you are insolvent. However, there are some things you should consider.
Firstly, it is important to inform your employer about your insolvency. While this is not mandatory, it is advisable, as your employer may be informed about your insolvency by third parties (such as creditors). Open communication can help avoid misunderstandings and strengthen the trust relationship with your employer.
Furthermore, you should ensure that your insolvency does not affect your job performance. As long as you fulfill your contractual obligations and continue to provide the agreed-upon work performance, there is generally no reason for your employer to terminate your employment.
However, it is important to note that your employer has the right to terminate your employment immediately if your insolvency affects your work or disrupts the trust relationship significantly. Therefore, it is advisable to handle your insolvency professionally and minimize any impact on your job performance.
Overall, it is possible to continue working during insolvency as long as you fulfill your contractual obligations and maintain open communication with your employer. If problems arise, I recommend seeking legal advice in a timely manner to protect your interests.
I hope this information is helpful to you and wish you success in managing your insolvency.
Best regards,
Katja Winterberg
