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Overseas Travel: Can I leave Australia if I become bankrupt?
The provider of this information is Insolvency & Trustee Services Ausralia.

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OVERSEAS TRAVEL

OVERSEAS TRAVEL

CAN I LEAVE AUSTRALIA IF I BECOME BANKRUPT?

Reproduced by express permission form the Commonwealth Government, Insolvency and Trustee Services Australia.

January 2004 Edition

Can I leave Australia if I become bankrupt?

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.

Where to contact us

ITSA website wwwitsa.gov.au

ITSA Offices

ACT

Level 2, NFF House, 14-16 Brisbane Avenue BARTON ACT 2600

Tel: 1300 364 785

Fax: (02) 6270 3608

email: itsa.canberra@itsa.gov.au

New South Wales

GPO Box 548 SYDNEY NSW 2001 Level 8, 135 King Street SYDNEY NSW 2000

Tel: 1300 364 785

Fax: (02) 8233 7891

email: itsa.sydney@itsa.gov.au

Queensland

Brisbane

PO Box 10443 Adelaide Street BRISBANE QLD 4001

Level 16, 340 Adelaide Street BRISBANE OLD 4000

Tel: 1300 364 785

Fax: (07) 3360 5466

email: itsa.brisbane@itsa.gov.au

Townsville

PO Box 1527 TOWNSVILLE QLD 4810 Level 1,

National Australia Bank Building 315 Ross River Road AITKENVALE OLD 4814

Tel: 1300 364 785

Fax: (07) 4727 0500

email: itsa.townsviIIe-0itsa.gov.au

South Australia/Northern Territory

GPO Box 2604 ADELAIDE SA 5001

Level 18, Grenfell Centre 25 Grenfell Street ADELAIDE SA 5000

Tel: 1300 364 785

Fax: (08) 8112 4305

email: itsa.adelaide@itsa.gov.au

Tasmania

GPO Box 850 HOBART TAS 7001

Level 4, ANZ Centre 22-26 Elizabeth Street HOBART TAS 7000

Tel: 1300 364 785

Fax: (03) 6221 7700

email: itsa.hobart@itsa.gov.au

Victoria

Level 10, Melbourne Central 360 Elizabeth Street MELBOURNE VIC 3000

Tel: 1300 364 785

Fax: (03) 9272 4900

email: itsa.melbourne@itsa.gov.au

Western Australia

GPO Box H536 PERTH WA 6841

Level 12, Durack Centre 263 Adelaide Terrace PERTH WA 6000

Tel: 1300 364 785

Fax: (08) 9268 1298

email: itsa.perth@itsa.gov.au

More information pamphlets are available.

See the website or contact ITSA for a complete list.

 
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