A bankrupt is legally obligated to cooperate with their trustee in bankruptcy per the Bankruptcy Act. This includes providing all books and records that are in their possession, as well as their passport if requested. In addition, a bankrupt must provide information about their examinable affairs as the trustee requires.

Section 77 of the Bankruptcy Act requires the bankrupt to:

• attend a meeting creditors if requested to do so and provide any information as the meeting requires
• keep his or her Trustee in Bankruptcy informed of any material change
• execute any document as required by the operation of the Act or at the request of the Trustee in Bankruptcy
• disclose any property which the bankrupt

 

Obligation to complete a Statement of Affairs

Section 54 of the Bankruptcy Act requires the bankrupt to file a statement of affairs within 14 days of being notified of the bankruptcy by his or her Trustee in Bankruptcy. A bankrupt must truthfully disclose all property which the bankrupt has a legal or beneficial interest in. If a bankrupt fails to disclose all property the bankrupt will commit an offence under Section 265 of the Bankruptcy Act. A bankrupt must also disclose all liabilities in his or her Statement of Affairs.

Obligation to provide current address

Section 80 of the Bankruptcy Act requires that a bankrupt must keep his or her trustee informed of the bankrupt’s address.

Other obligations of a bankrupt

A bankrupt will commit an offence and could be imprisoned for 1 year if the bankrupt fails to do any of the following:

• truthfully and fully disclose all property
• truthfully and fully disclose any transfer or disposition of property
• comply with a direction of his or her Trustee in Bankruptcy to deliver up property in the bankrupt’s possession
• comply with a direction of his or her Trustee in Bankruptcy to deliver up books and records in the bankrupt’s possession
• tell his or her Trustee in Bankruptcy as to the whereabouts of his or her books and records
• include all relevant material in his or her statement of affairs
• inform his or her Trustee in Bankruptcy if the bankrupt is aware that a creditor has filed a false proof of debt
• provide an explanation if requested by his or her Trustee in Bankruptcy of any loss or depreciation of any assets of the bankrupt within 2 years of the bankruptcy

 

If you are experiencing financial distress, please contact Australian Bankruptcy Services to speak to one of our professional consultants today on 1800 462 767. Our toll-free hotline is open 24 hours a day, 7 days a week to assist you with any questions relating to bankruptcy and personal debt.