Bankruptcy & Insolvency

You can leave Australia while you are bankrupt but you must obtain your trustee’s written consent before you leave.

Your trustee will need to be satisfied that you have legitimate reasons for the proposed travel e.g.:

  • as a condition of your employment
  • for compassionate reasons.

Your trustee may impose written conditions when giving permission such as:

  • the period or duration of travel
  • the date you are required to return to Australia
  • that you pay any contributions you have been assessed to pay.

Contributions are sums of money that a bankrupt person is required to regularly pay to the trustee from their income.

What are assets?

Assets or property are anything you own when you become bankrupt or anything you buy or receive before the end of your bankruptcy. Income you earn during bankruptcy is not included but will be taken into account in your income contributions assessment.

More information is available in the pamphlet: Income Contributions

Going bankrupt will affect your assets.

Some assets are exempt, which means you may keep them.

Some assets are non-exempt or divisible, which means your trustee may sell them for the benefit of your creditors.

What is an annulment?

Annulment is the cancellation of bankruptcy before the end of the normal 3 year period.

Bankruptcies are usually annulled:

  • if the creditors’ debts and trustee’s expenses and fees have been paid in full, or
  • if creditors have accepted an offer of something less than payment in full (a composition or arrangement), or
  • by application to the Court, in some limited circumstances.

Effects of an annulment

  • your annulment is recorded on the National Personal Insolvency Index (NPII) database and is available to the public. Your name will appear on the NPII forever.