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TAS Can Bankrupt Travel Overseas?

Discussion in 'Debt and Bankruptcy Law Forum' started by alex7140, 20 November 2014.

  1. alex7140

    alex7140 Member

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    Hi. When bankrupt, can one travel overseas without informing their bankruptcy trustee first?
    Would the trustee know if you left the country?
     
    Gus likes this.
  2. Amanda E

    Amanda E Well-Known Member

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    Hi @alex7140,
    Have a read of the AFSA (Australian Financial Security Authority) 'Overseas travel' page and the AFSA Personal Insolvency Information Booklet. Here's a relevant extract related to your legal question:
    There may be circumstances in which a bankrupt wishes to, or is required to travel overseas. A bankrupt can travel overseas provided they have they have their trustee’s written permission prior to travelling and a legitimate reason to travel eg: as a condition of employment.

    Warning: It is an offence to travel or make preparations to travel without your trustee’s written consent. Your trustee can extend your period of bankruptcy ,or you can conviction face imprisonment.


    The trustee will know the bankrupt's passport number, so they may well be notified, or could readily find out if the bankrupt left the country.

    Hope that guides you in the right direction.
     
    Michael T likes this.
  3. Gus

    Gus Active Member

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    Do you think the bankruptcy trustee would know if I left the country on a British passport? I have 2 passports :)

     
  4. Brooklyn

    Brooklyn Member

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    It is my understanding that "legitimate reason to travel" refers to the fact your travel is not an attempt to defeat creditors.
    In the Bankruptcy Act the only reference I have found to travel so far is in Section 272 which states:

    Leaving Australia with intent to defeat creditors etc.
    (1) A person who:

    (a) within 6 months before the presentation of the petition on or by virtue of which he or she became a bankrupt, left Australia, or did an act preparatory to leaving Australia, with intent to defeat or delay his or her creditors; or

    (b) after the presentation of the petition on or by virtue of which he or she became a bankrupt and before he or she became bankrupt, left Australia, or did an act preparatory to leaving Australia, with intent to defeat or delay his or her creditors; or

    (c) after he or she has become a bankrupt and before he or she is discharged from the bankruptcy, without the consent in writing of the trustee of his or her estate, leaves Australia, or does an act preparatory to leaving Australia;

    is guilty of an offence and is punishable, on conviction, if the offence relates to the doing of a thing specified in paragraph (a) or (b), by imprisonment for a period not exceeding 5 years or, in any other case, by imprisonment for a period not exceeding 3 years.

    (2) The trustee may impose written conditions on a consent given for the purposes of paragraph (1)(c). If the bankrupt is liable to make a contribution to the trustee under section 139P or 139Q, the conditions may include conditions regarding the payment of thatcontribution.

    (3) If the bankrupt contravenes any condition imposed by the trustee, the bankrupt is guilty of an offence and is punishable, on conviction, by imprisonment for a period not exceeding 1 year.

    Link included below:
    http://www.austlii.edu.au/au/legis/cth/consol_act/ba1966142/s272.html
     
    John R likes this.
  5. Sarah J

    Sarah J Well-Known Member

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    Whilst your trustee may not know about it if you travel overseas on your British Passport, when or if they find out, you will be in trouble. Hence, best to obtain the trustee's permission before travelling. At the very least, give them a heads up notice.

    You may also have a problem entering back into the country if you are bankrupt and traveling on your British Passport.
     
  6. Gus

    Gus Active Member

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    Yes, that all makes sense Sarah, thanks.
     
  7. Sophea

    Sophea Well-Known Member

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    Also, if you are an Australian citizen and you try to leave Australia on a British passport, you will have no entry stamp because you reside here and I am guessing they would ask questions and want to see your Australian Passport?? You may also have difficulties coming back in here on your British - like you would need to be on a visa of some sort - unless you can prove you are an Australian resident.
     
    Gus likes this.
  8. Gus

    Gus Active Member

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    Yes I see, thanks Sophea.
     

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