Bankruptcy releases you from having to pay most debts, allowing you to start life afresh, without being ridden by unmanageable debts. There are however certain restrictions that accompany bankruptcy. One of these involve traveling overseas.
As a general rule, bankrupts are allowed to travel overseas. A bankrupt however will be required to obtain the consent of their bankruptcy trustee prior to travelling. This consent will not be unreasonably withheld. A bankruptcy trustee will only withhold consent if the bankrupt has not been complying with their obligations or is a flight risk.
What do you have to do to travel
A travel request will have to be submitted to a bankruptcy trustee prior to travelling overseas. This should include details such as the purpose and length of travel. At Pearce & Heers, we have a standard form which we require bankrupt’s to complete to request to travel. We can also process travel requests quickly including generally within 24 hours for urgent travel.
A bankruptcy trustee may consent to, or reject, the request to travel. At times, a trustee may also impose certain conditions prior to consenting, such as requiring a bankrupt to comply with their obligations to provide outstanding requested information prior to travel. A trustee may also require the bankrupt to pay outstanding income contributions prior to providing their consent.
Travelling without consent
Travelling without first obtaining the bankruptcy trustee’s consent is an offence which may be prosecuted. A bankruptcy trustee can also object to a bankrupt’s discharge from bankruptcy and extend the period of the bankruptcy to five year from the date of return to Australia.
Contact us for assistance
Ensure to speak to a qualified professional prior to declaring bankruptcy. The team at Pearce & Heers is led by registered bankruptcy trustees who will be able to advise you on the risks of bankruptcy. Depending on your circumstances, we may even be able to provide a solution that avoids bankruptcy.
So, contact our Brisbane or Gold Coast offices today for a free no obligation consultation to discuss you circumstances.