One of the major concerns for people who are considering bankruptcy is that they will lose their passport and not be able to travel overseas. It is true that when you are bankrupt you have to give your passport to your Trustee, but it is still possible for you to go overseas.

Your Trustee in Bankruptcy must request that your passport to be handed in and hold onto it for the period of your bankruptcy. If you require the use of it you are able to apply with them to have it returned for the required period. Your Trustee will need a completed request form and details of your proposed trip, for example, the reasons for it, your itinerary, the cost of the trip and details of how it is being funded. What they essentially need to know is that you will be coming back from overseas, and that you have not used any undisclosed funds to pay for the trip. If it seems reasonable that you could have saved the money during the period of your bankruptcy, or if someone else is paying for it, then this factor should be covered.

Requesting the use of your passport does not guarantee that permission will be granted, as the decision is at the discretion of your Trustee. If you have not complied with their requests for information, or have not been paying any compulsory income contributions that you are liable for, the Trustee can use this fact to deny your request. If you do leave the country without permission and you refuse to return when requested in writing by your Trustee, then your bankruptcy period can be extended from three years, to eight years.

Many people that we speak to are concerned about their ability to travel overseas whilst bankrupt as their work requires it, or they have family overseas. If you are considering bankruptcy and have concerns, call us on 1800 462 767 for advice. We have a Registered Trustee in Bankruptcy on site and will be able to give you the most accurate and up-to-date information on how bankruptcy might affect you.