Bankruptcy And Employment: Can You Keep Working?

Article Summary

Bankruptcy does not automatically prevent most Australians from keeping their job, earning an income, operating a business as a sole trader, or continuing their professional career. However, for many regulated professions, the real legal consequences arise not from bankruptcy itself but from separate licensing laws, disclosure obligations, fit-and-proper-person assessments, and restrictions on company directors.

Whether bankruptcy affects your employment depends on your occupation. While teachers, tradespeople, healthcare workers and most employees can usually continue working without interruption, lawyers, financial advisers, company directors, tax practitioners, insolvency professionals and other regulated professionals may face additional reporting obligations, regulatory scrutiny or restrictions under profession-specific legislation.