A common question we get asked is: Can I be self employed if I become bankrupt?
If you are living overseas and your business does not involve New Zealand, the good news is that currently, not only can you be self employed, you do not need to apply for permission to be self employed. If your business involves New Zealand this may or may not apply and in that case the situation needs to be considered in more detail. Other things for you to consider include:
If you are a bankrupt living in New Zealand the situation is very different. You must not be self employed without first obtaining permission. If you do not obtain permission this may be a criminal offence. You cannot assume that permission will be granted.
Any questions? Please ask.
If you are living overseas and your business does not involve New Zealand, the good news is that currently, not only can you be self employed, you do not need to apply for permission to be self employed. If your business involves New Zealand this may or may not apply and in that case the situation needs to be considered in more detail. Other things for you to consider include:
- If there are, or will be, assets in the business now or during the bankruptcy.
- Any impact on being a company director.
- How and when to report your income to the Official Assignee during the bankruptcy if your income is lumpy. The good news is that this can be negotiated.
- Any impact on lending to the business. In most cases foreign lending is not impacted but this is something that you would need to check with the lender if you are worried.
If you are a bankrupt living in New Zealand the situation is very different. You must not be self employed without first obtaining permission. If you do not obtain permission this may be a criminal offence. You cannot assume that permission will be granted.
Any questions? Please ask.