In Australia, after you are declared bankrupt, it is still possible to travel overseas during the period of your bankruptcy, provided that first you have obtained the written permission of your bankruptcy trustee to do so.

While this requirement may seem a bit daunting at first reading, in reality it need not be a serious impediment for you to do so, although in a media release dated 23/07/07 the government reported that prosecutions had been initiated where bankrupts had attempted to travel overseas without first obtaining permission from their bankruptcy trustee. No numbers were mentioned.

Overwhelmingly, over overwhelmingly the bankruptcy trustees seem to grant this permission provided that they are satisfied that the bankrupt is not trying to skip the country so as to avoid their responsibilities to the trustee in the administration of the bankruptcy.

Before permission will be granted you need to be able to meet any other current obligations to your bankruptcy trustee, particularly those that relate to any contributions that you are paying if your income is over the current Threshhold Amounts. These will have to be paid advance before you go. To determine this your bankruptcy trustee will want to know the details of your current income.

The official government line is that you need to have legitimate reasons for the proposed travel, for example, that the travel is for compassionate reasons or is a condition of your employment. I've never heard of any person not being given permission to go on the grounds that the trip was for a holiday.

I advise bankrupts to contact their trustee, in writing, about a month to 6 weeks beforehand, advising where you wish to go, the dates that you wish to leave and will return, and for some reason best known to the people who make up these rules, who is paying the fare? If someone else is paying, your trustee will need a confirming letter from that person.

Your will need to supply your trustee with an email address, telephone number and overseas contact address.

Then there's the big stick, and I wonder why they bother. The officials in charge also write that 'breaching a travel condition imposed by your trustee is also an offence under the Bankruptcy Act, with the penalty for this being up to 12 months imprisonment.'

In looking at media releases about bankruptcy prosecutions, I could find none reported in all 2007, and up to the end of September 2008 that related to bankrupts actually breaching travel conditions.

Author: Fred Appleton

About the author:
For more than 10 years Fred has helped people understand and deal with bankruptcy from the point of view of the person owing the money. Fred has helped thousands of people sort out their debt problems. From what people have told Fred, over the years, he is certain that bankruptcy can save lives and marriages too.
http://www.fredappleton.com.au

Article source: Free Bankruptcy Articles.