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.
More information is available in the pamphlet: Income Contributions
You are allowed to have a passport
however you must hand it over to your trustee on request.
Bankruptcy is a process where people who cannot pay their debts become bankrupt to receive the protection of the Bankruptcy Act and their estate is administered by a trustee. It allows for the fair distribution of property among creditors and the prosecution of dishonest debtors.
Your trustee can be either a registered trustee or ITSA.
Your trustee may refuse permission
if:
- you have not carried out all of your obligations under the Bankruptcy Act e.g. filing a Statement of Affairs
or
- you are required to assist your trustee in the administration of your bankruptcy e.g. to attend an interview, examination or a meeting of creditors.
If you don’t return to Australia when you said you would, or if your trustee has asked you to return and you do not, your trustee may lodge an objection to your discharge. If an objection is lodged your bankruptcy will be extended by 8 years from the date you return to Australia.
Warning:
If you leave, or try to leave Australia without the written consent of your trustee, you are committing an offence under the Bankruptcy Act, punishable by law. You may be prevented form leaving Australia at the airport or ship terminal.
Contravening a condition imposed by your trustee is also an offence under the Bankruptcy Act punishable by law.
How do I apply for permission?
Write to your trustee as soon as you become aware that you may need to leave Australia explaining:
- the reasons for the proposed trip
- the name of the countries you propose to visit
- the date you intend to leave Australia
- the date you intend to return to Australia
- the name of the person paying for the trip, and a confirming letter from that party (unless you propose paying for the trip yourself)
- an overseas address where your trustee could readily contact you
- your level of income in the current Contribution Assessment Period (CAP)
Your CAP will generally be the 12 month period beginning on the date of, or anniversary of, your bankruptcy. Ask you trustee if you do not know.
- proposed arrangements for paying any contribution liability whilst overseas.
Your trustee must have adequate time and information to consider your request. Your request must be in writing so that your trustee understands exactly what you are requesting.
You will be advised promptly of the trustee’s decision and any conditions placed on your travel.
If you are not satisfied with your trustee’s decision you may apply to the Federal Court or the Federal Magistrates Service for a review. You should seek legal advice before making an application.
Source: Insolvency and Trustee Services Australia 2007