With much ambiguity and rumours surrounding bankruptcy you may be worried that filing for bankruptcy may jeopardise your job or chances of getting a job. But chances are that bankruptcy would not endanger your job and here is what will most likely happen.

 

How would bankruptcy affect your current job?

If you are wondering whether your employer can fire you just because you filed for bankruptcy then the answer is ‘no’. The Bankruptcy Act does not impose any restrictions on your employment in any trades or professions, however, certain limitations may be imposed by licensing parties or professional associations. If you are a professional, check with your governing body to confirm whether there is any affect on your membership or license during bankruptcy.

 

It is also recommended that you review your employment contract to see if there are any clauses regarding bankruptcy that will affect your job and have a discussion with your manager or HR department.

 

How would bankruptcy affect me when applying for a job?

When you are applying for a new job it is important to consider that some employees will do a credit check and may see your bankruptcy on your report. Government organisations cannot automatically deny you employment but some private companies may deny you employment  due to job specific requirements and regulations. In most cases, neither should deny you employment on the basis of bankruptcy and hence be unlikely to significantly impact your job search.

 

We recognise that employment can be a complex area, if you would like more information on how bankruptcy may affect your employment based on your specific circumstances, then please speak to one of our professional and experienced Bankruptcy consultants from Australian Bankruptcy Services. Contact us on our 24 hour advice hotline on 1800 462 767.