Frequently Asked Questions

Will I lose my job if I become bankrupt?

It is very unusual for a person to lose their employment due to becoming bankrupt.

For self-employed persons, there can be issues if their work is conditional on a level of registration or certification. In these situations, it is possible that you may be put on a lower level of certification that would limit the type of work you can do during your bankruptcy.

How to know if you job is the same during bankruptcy

We recommend that you review your employment/occupation to assess whether bankruptcy will impact you. Some issues to check include:

  • Does your employment contract say that your employment will cease if you become bankrupt?
  • Do you have industry certification or registration which is a requirement of your employment? If you do, contact your licencing body and check whether your certification or registration would be lost or mitigated if you were to go through these circumstances.
  • Does legislation exist pertaining to your employment which would prevent you from continuing your employment?
What to do if your employment says you cannot be bankrupt

If you have identified any issues, the next step is to check what impact it will have on your employment. For example, if your employment contract states that you cannot be bankrupt, we recommend you contact your HR department and discuss it with them.

We have received feedback from an employed person that the HR department advised the employment would continue without change. We have also been advised by self-employed builder that he could continue operating but on a reduced licence. Additionally, we have been told by a Solicitor that he could continue trading but could not operate a trust account while bankrupt.

We recommend you check the effect this would have on your employment. That way you can plan your financial recovery with certainty.

If you would like to discuss this and how it would work for you, we are here to help. If you have any questions please give us a call on 1300 764 197 or email

Further Reading: We recommend our article 'What Is Bankruptcy? How Does It Work?'.

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