This is perhaps one of the most widespread myths concerning bankruptcy.
Contrary to popular belief, you are not absolutely forbidden from travelling overseas while you are filing for bankruptcy.
The consent of your bankruptcy trustee
You cannot leave the nation without first receiving permission from your bankruptcy trustee, as required by law.
There are various rumours that have emerged that claim authorisation will only ever be granted if you are travelling overseas for work-related reasons. This is also a myth.
The sole excuse that does not need approval is business travel. There are numerous reasons why a bankrupt person could go overseas, just as there are many reasons why a non-bankrupt person would want to or need to.
It’s simple enough to ask your personal bankruptcy trustee for approval; often, you only need to fill out a form and provide the trustee the specifics of your intended itinerary for evaluation.
The application process was easy, and the provided form was clear and concise. There were no problems.
What factors your bankruptcy trustee considers before approving your request for an overseas travel
Your bankruptcy trustee will need information from you, such as the following:
the financing source for your travel. If you were able to save the money for the trip while you were bankrupt or if someone else paid for it, you should be OK.
Where you’re going, when you’re going, how long it will take you to get there, and why you’re travelling (a condition of your employment, for compassionate reasons, or for a holiday).
After ensuring that the vacation arrangements are genuine, request is made.
How challenging is it to get your request for a vacation abroad approved?
Actually, a lot of it depends on you and how you conducted yourself when declaring bankruptcy.
When you apply for permission to go abroad, your bankruptcy trustee must evaluate your bankruptcy problem and determine if you are abiding by your obligations under the Bankruptcy Act.
When deciding whether or not to grant you permission to leave the country, your bankruptcy trustee will take into account the following factors:
Have you cooperated fully with the information requests made by your Trustee?
Exist any problems that need to be fixed that need your presence in Australia?
The requirement that you deduct donations from your income has been established? If so, have you received your donations on time?
Is there a possibility that you won’t return to Australia?
I was cautious to heed the trustee’s directions, so I eventually had no issues while travelling abroad.
What happens if your request to go overseas is rejected?
The first step would be to determine why. You must get written notification from your trustee informing you of the reduction and the reason(s) for it.
The majority of the time, you can work directly with your trustee to get this decision reversed, but if you are unable to, you still have choices. If you believe the trustee’s decision was unfair, you may register a complaint or ask for a review of it.
These include:
applying to the court to have the Bankruptcy Act’s refusal to agree reviewed (should you decide on this option, it would be appropriate for you to also seek your own legal advice).
You may also be aware that you must relinquish your passport over to your bankruptcy trustee or that you are not allowed to own one. Although your trustee has the right to ask you to hand up your passport, most people don’t consider this request since it is fully up to them.
