When considering bankruptcy , there are two main concerns that one needs to consider. The first is whether there are any assets that could be sold during the bankruptcy, such as your house or your motor vehicle. The second is whether it can affect your means of earning a living. For the majority of people, this second concern is of little consequence. There are some people, though, that will have to consider potential effects of bankruptcy on their job prospects.

Contract Clauses

Some people, in particular those who work in finance, or maybe gaming, might have a clause in their contract stating that they will lose their job if they declare bankruptcy. If you are concerned that your employment contract might contain such a clause, it should be an easy matter for you to check with your HR department.

Licenses

Do you need to hold a specific license to be able to carry out your job? Before you consider bankruptcy, you should call your relevant licensing authority and find out whether it might cause your license to be suspended. A fairly detailed list of associations and licensing authorities that may have rules concerning bankruptcy can be found here

Credit Checks

If a potential employer was to check your credit file, they would see a default that is placed there for 7 years as of the date you go bankrupt. They could also check the National Personal Insolvency Index, which is a permanent record.

Self-employment

Being a bankrupt person can have an effect on the way that you run your business, either as a sole trader or in a partnership. For more details on running a business whilst bankrupt, please refer to.

Directorships

If you are a bankrupt person, you are automatically disqualified from managing a company as a director, unless you receive approval from the court. Once you have been discharged from your bankruptcy you will be able to apply to be reinstated as director.

If you are considering bankruptcy and you fall into any of the above categories, you need to seek professional advice before making a decision. At the Australian Bankruptcy Service our trained consultants work under the supervision of our in house Registered Trustee in Bankruptcy, so you can be assured that you will receive the most accurate information from them. Call today on 1800 462 767 and find out how bankruptcy might affect your job prospects.