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How to check if a sole trader builder is bankrupt

By BuilderVet team. Last reviewed 2 November 2026.

You check an individual’s bankruptcy status with the Bankruptcy Register Search run by the Australian Financial Security Authority (AFSA), which searches the National Personal Insolvency Index. Each search costs $15, it covers individuals only, and for a builder trading through a company you check the company on ASIC instead and can search its directors on AFSA.

This guide explains when a bankruptcy search is worth doing, how to run it well, what the result means for a NSW builder’s licence, and what the search cannot tell you. For the full set of checks on a NSW builder, start with how to check a NSW builder or run a free BuilderVet check.

Why does a builder’s bankruptcy matter to you?

In NSW, bankruptcy affects whether a person can hold a building licence at all.

  • NSW Government licensing guidance says it cannot issue a contractor licence for building or swimming pool building work to a person who is currently bankrupt.
  • An existing licence or authority may be cancelled if the holder is declared bankrupt.
  • Under the Corporations Act, an undischarged bankrupt is automatically disqualified from managing corporations and stops being a director or company secretary, unless a court gives leave.

So a bankruptcy record against the person you are dealing with is a strong reason to stop and ask questions. It may mean the licence you were shown is no longer valid, or that the person cannot lawfully run the company named on the quote.

Which builders should you search on AFSA?

The National Personal Insolvency Index does not include records on companies, only individuals. Match the search to the way the builder trades.

How the builder trades Search AFSA for Also check
Sole trader, licence in their own name The individual NSW licence record, ABN Lookup
Partnership Each partner NSW licence record for the partnership
Company (Pty Ltd) Directors, if you want to go further ASIC company record, ASIC Banned and Disqualified search, NSW company licence

For a company, the company’s own insolvency (administration or liquidation) shows on ASIC, not AFSA. See how to check a builder’s company on ASIC.

  1. Go to the Bankruptcy Register Search page on afsa.gov.au and choose Search now.
  2. Enter the family name and given name. Both are mandatory.
  3. Pick a search method for each name. “Starts with” helps if you are unsure of spelling, for example STE matches STEVEN, STEPHEN and STEPHANIE. “Exact” returns exact matches only.
  4. Add a date of birth if you know it, in DD/MM/YYYY format. Leave “also match records with no date of birth” ticked, because some records have no date of birth.
  5. Decide how far back to search. By default the search covers insolvency records started in the last 10 years. Tick the box for all records if you want older ones.
  6. Pay the $15 fee by Visa or Mastercard.

A search returns at most 50 matches. If you get too many, narrow the name or add a date of birth.

What does the $15 search give you?

According to AFSA, each $15 search gives you one of these:

  • an extract, which is the details of one person’s insolvency, or
  • a result report, which is a list of people who match your search, or
  • a “No results” extract if nothing matches.

Each additional extract or result report costs another $15. You can have results and invoices emailed to you.

The National Personal Insolvency Index covers most personal insolvency proceedings in Australia, including bankruptcy, debt agreements and personal insolvency agreements.

How should you read the result?

A “No results” extract. No matching record was found for the details you entered at that time. It is not proof that the person has never been insolvent, especially if you used a short date range or a misspelt name.

A result report with several names. Common names produce many matches. Do not assume a match is your builder. A date of birth is the best way to separate people. If you are unsure, you can buy the extract for the one that looks like a match, or ask the builder directly.

An extract showing a bankruptcy. Read the dates. A person whose bankruptcy has ended is in a different position from someone currently bankrupt. AFSA notes some newer fields, such as commencement and finalisation dates, are not yet populated for every record.

AFSA also says anyone relying on the index should make their own enquiries, and that the extract reflects the index at the time and date it was produced.

What should you do if your builder shows as bankrupt?

  1. Check the licence again. Search the NSW licence register for the person and any company they run. Look at the status and dates. See cancelled, expired or suspended builder licences.
  2. Check who is on the contract. If a company is the contracting party, search ASIC for its current directors. See NSW builder licence types for why the company needs its own licence.
  3. Ask the builder to explain. There may be a simple answer, such as a discharged bankruptcy many years ago. Ask in writing and keep the reply.
  4. Hold off on paying a deposit until you are satisfied. For jobs over $20,000, the builder must also give you a Home Building Compensation certificate before taking a deposit. See verifying HBC insurance in NSW.

We don’t make judgements about individual builders. A record tells you what to ask, not what to conclude.

Can a bankrupt person run a building company?

Not as a director, unless a court has given leave. ASIC says a person who is currently bankrupt, or covered by a personal insolvency agreement that has not been fully complied with, cannot be a company officeholder. A current officeholder who is declared bankrupt is automatically disqualified, and the company must tell ASIC within 28 days.

ASIC also matches data from the National Personal Insolvency Index against its Companies Register to find current officeholders who are disqualified. ASIC notes the Companies Register is not updated in real time, so a record can lag.

If you see the same people behind a series of companies, read how to spot a phoenix builder.

A checklist before you sign

  1. Work out whether you are contracting with a person, a partnership or a company.
  2. For a person or partnership, consider an AFSA Bankruptcy Register Search for each individual.
  3. For a company, check ASIC for status and directors, and the ASIC Banned and Disqualified search for directors.
  4. Check the NSW licence record for every name involved.
  5. Ask about any record you find, in writing.
  6. Keep copies of every search result with the date.

QLD note

The AFSA search is national, so it works the same way for a Queensland builder. QLD licensing rules on insolvency are set by the QBCC. See QBCC suspensions and cancellations explained.

How BuilderVet helps

Our free check puts the NSW licence record beside the ASIC and ABN records for the business on your quote, with the date we last checked each one. We do not search AFSA for you, so a bankruptcy search is an extra step you take yourself. If you have signed with a NSW builder, Build Watch (A$79 once) sends change notices for 24 months if those records change. See pricing.

Frequently asked questions

How much does a bankruptcy search cost in Australia?

AFSA charges $15 per Bankruptcy Register Search. That includes one extract or one result report. Each extra extract or report is another $15.

Can I check if a building company is bankrupt on AFSA?

No. The National Personal Insolvency Index covers individuals only. Companies go into administration or liquidation, which you check on the ASIC register.

Can a bankrupt person hold a NSW builder licence?

NSW Government says it cannot issue a contractor licence for building or swimming pool building work to someone currently bankrupt, and an existing licence may be cancelled if the holder is declared bankrupt.

Can a bankrupt be a company director?

Not without leave of the court. An undischarged bankrupt is automatically disqualified from managing corporations under the Corporations Act.

Does “No results” mean the builder has never been bankrupt?

Not necessarily. It means no record matched the details you entered. The default search covers only the last 10 years, so tick the option for all records if you want older ones.

Do I need the builder’s date of birth?

No, but it helps tell apart people with the same name. Leave the option to match records with no date of birth ticked, because some records do not have one.

Sources

Related guides

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Last reviewed 2 Nov 2026