Is it true that I can’t leave the country once I become bankrupt?

1 year ago
admin
2 minutes

Is it true that I can’t leave the country once I become bankrupt?

Australia, being declared bankrupt does come with certain restrictions on travel, but it does not necessarily mean you are completely prohibited from leaving the country. Here are the key points regarding travel restrictions during bankruptcy:

Travel Restrictions During Bankruptcy

  1. Permission Required: In Australia, if you wish to travel overseas during your bankruptcy period, you need to obtain written permission from your bankruptcy trustee. You must apply for this permission and provide details of your travel plans.
  2. Application Process: The application for travel must be submitted well in advance of your planned departure. The trustee will review your request and consider factors such as the purpose of your travel and how long you plan to be away.
  3. Conditions for Approval: The trustee may impose certain conditions on your travel. For example, you might need to provide a guarantee or demonstrate that your trip will not adversely affect your ability to comply with your bankruptcy obligations.
  4. Penalties for Unauthorised Travel: If you leave the country without obtaining the necessary permission, you could face penalties, including the potential extension of your bankruptcy period or other legal consequences.

Why Travel Restrictions Exist

Travel restrictions are in place to ensure that bankrupt individuals remain within the jurisdiction and comply with their bankruptcy obligations. It prevents individuals from evading their responsibilities or leaving behind unresolved financial matters.

What to Do If You Need to Travel

  1. Contact Your Trustee: If you need to travel overseas, contact your bankruptcy trustee as early as possible to discuss your situation and obtain the necessary application forms.
  2. Provide Comprehensive Information: When applying for permission to travel, provide detailed information about your travel plans, including dates, destinations, and the purpose of your trip.
  3. Await Approval: Wait for written approval from your trustee before making any travel arrangements. Ensure you comply with any conditions imposed by the trustee.

Conclusion

While being declared bankrupt does impose certain travel restrictions, it does not mean you are completely barred from leaving the country. With proper permission from your bankruptcy trustee and compliance with any conditions, you can travel overseas during your bankruptcy period. Always ensure to follow the correct procedures to avoid any legal complications.