A bankrupt person is subject to some restrictions not imposed on non-bankrupt persons. Permission is required to travel overseas. Some actions are an offence before and during bankruptcy to which penalties apply.
Under section 77(1)(a) of the Bankruptcy Act, bankrupts must hand their passport to the trustee unless excused by the trustee. In general, AFSA, if it is the trustee in the bankruptcy, will not require bankrupts to hand in their passports.
Bankrupts must apply in writing to the trustee for permission to travel overseas and pay a fee to make this application. If AFSA is the trustee, it generally considers the following criteria when deciding whether or not to give permission to travel.
• Is the travel necessary to earn income?
• Does the travel relate to the death or serious illness of a close relative?
• Has the bankrupt made arrangements for making compulsory contributions in advance?
• Can the bankrupt show that someone else is paying for the travel?
• Is there a return ticket?