Have you ever thought about the effect that declaring bankruptcy can have on your job? Bankruptcy can have a negative impact on certain jobs and professions which you may be employed in. The current career you have now or what you plan to do in future should always be considered before filing for bankruptcy.

The act of filing for bankruptcy itself doesn’t restrict what types of work you can engage in but there are many professional or governing bodies which set strict regulations and conditions. Within Australia, professional associations and statutory boards set the eligibility requirements for particular professions such as accountants, tax agents, barristers and lawyers. These professional bodies have by-laws preventing people who are bankrupt from becoming members of the association. It is often the case that in order to engage in employment, you must be a member of that organisation so whilst you are bankrupt this will prevent you from working in these professions.

The other way bankruptcy can affect your job is by legislation which states that bankrupts cannot engage in that employment. The ASIC Act prevents anyone bankrupt from being a company director or managing a company unless you have the permission of the court.

What If I’m a sole trader?
While bankrupt it is still possible to run your own business, however, there may be restrictions, such as if you incur credit more than $5,647 you need to disclose that you are bankrupt.
Your business name should contain your full name to enable people to search for you on the National Personal Insolvency Index (NPII).
If your business name doesn’t contain your full name, you must tell all people you do business with that you’re bankrupt.
If you are considering filing for Bankruptcy, then it is important that you speak to a professional so that you gain a thorough understanding of it. Call our professional and friendly debt consultants at Australian Bankruptcy Services for free, expert advice on 1800 462 767.