Employment Restrictions for Bankrupts – Australia
The Bankruptcy Act does not impose restrictions on employment for persons who are bankrupt. There may however be restrictions for persons who are either employed or self-employed where their work requires a licence from the government or industry body.
From our experience, the best advice we can give you is to contact the body that oversees your licence and ask them whether restrictions would be placed on you if you if you were to become bankrupt. Our observation is that each person is accessed on their own circumstances, so it is important that you talk to the body that controls your licence and discuss your situation.
To give you some idea of the sort of restrictions that may be applied we detail below feedback we received from as builder, solicitor and security guard when they became bankrupt:
Builder: not allowed a full builder’s licence but able to trade in a reduced capacity on a restricted licence.
Solicitor: able to continue practicing but not able to operate a trust account whilst bankrupt.
Security Guard: not able to keep working as a security guard
It is important that you talk to your industry body and discuss your circumstances to work out what restrictions if any would apply to your licence or registration.
To explore how bankruptcy works we recommend the following articles on our website:
1/ What is bankruptcy? How does it work? Click here
2/ Wages Super and Spending. Click here
We are here to help. If you have any questions please give us a call on 1300 794 492 or email email@example.com