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T O P I C    R E V I E W
poodle Posted - 10 March 2010 : 20:37:58
Hi,

Was wondering if anyone had any experience of/advice on the following?

7 months prior to BR, I signed a study agreement to say that if I would pay back money for a course if I left the organisation before a certain time period. At the time, I had no idea I would end up BR.

So, 15 months on, I am leaving the company (no alternative as being victimised at work) and now they want the money back. I've spoken to the OR who says it can be included in my BR as it is similar to a buy now pay later type of agreement and I had no idea I would be going BR when I signed it. This is a huge relief.

However, I was wondering, is my employer allowed to deduct money from my salary towards reclaiming this money? I have a sneaky suspicion that I will have a final salary of 0 and if so is this allowed?

I would be grateful for anyone's input.

Many thanks, I really am grateful for all the help I have received on this board!
1   L A T E S T    R E P L I E S    (Newest First)
Bridgewood Posted - 11 March 2010 : 10:03:44
Hi Poodle, I'm not sure this is going to answer your question as I have to admit it is not something I've come across in 25 years of dealing with bankruptcies!

However, the general question to ask is "When was the debt incurred?" If the debt was incurred prior to bankruptcy (even if the amount of the liability is unknown at the time) then it is a bankruptcy debt and you are no longer liable after you are bankrupt.

In this case, I think it could be argued that your potential liability to repay the course fees arose at the time the fees were paid or agreement to repay was signed (i.e before your bankruptcy) and so the OR is correct as it is what would be called a contingent liability.

Accordingly, I don't think your employer automatically has the right to set off a pre bankruptcy liability by you to them against a post bankruptcy liability from them to you.

It may be that, if your employer has already said they want the fees repaying, you advise them it is a bankruptcy liability and refer them to the OR, and ask them to confirm they will not try to deduct it from your final salary payment.

Good Luck!

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