It is relatively common for people to find themselves with debts in another country that they are unable to pay. We have had numerous calls from people who are overseas asking if they can declare themselves bankrupt in Australia.

To be able to declare bankruptcy in Australia:

• your debts must be Australian ones;
• you must be insolvent, ie. unable to pay your debts as and when they fall due; and
• you must be a permanent resident with an Australian address.

You also need to be physically present in Australia to go through the process of applying for bankruptcy. If you are overseas, then, you will have to return to Australia in order to declare bankruptcy.

Once you have become a bankrupt person in Australia you would then need your Bankruptcy Trustee’s permission to return overseas. To apply for such permission you would need to tell your Trustee why you need to be overseas, how the travel is being funded, and when you will return. If you are working overseas and are given permission to do so, you will need to report your income to your trustee.

The decision to allow a bankrupt person to travel overseas rests solely with the Trustee in Bankruptcy, and so an assurance that it will be allowed should never be assumed. If the Trustee has good reason to deny your request you would need to remain in Australia. To leave the country without your Trustee’s permission whilst bankrupt is an offence under the Bankruptcy Act.

If you are currently overseas and struggling with debts in Australia, contact us to talk about your options. If you are unable to call any of our numbers you can submit an online enquiry through our website, and we can chat via email or make a time to Skype.