Last updated 30 November 2022
Operating a business
The bankrupt can still operate a business while bankrupt. If a bankrupt trades under an assumed name or business name, either as a sole trader or in partnership, the bankrupt must disclose their bankrupt status to everyone they deal with. Under s 206B of the Corporations Act 2001 (Cth), the bankrupt cannot be a director of a company or be involved in its management without the permission of a court.
Change of personal details and approval of overseas travel
A bankrupt must keep their trustee informed in writing of all changes of name and/or address (s 80 Bankruptcy Act 1966 (Cth) (Bankruptcy Act)). If the bankrupt wishes to travel overseas, a written approval of the bankruptcy trustee must be obtained. The trustee may impose certain conditions prior to permission to travel is being granted. A written request for approval of overseas travel should be made to the bankruptcy trustee well in advance of the proposed travel date with details of the reason, timetable and how the expense is being paid (s 272 Bankruptcy Act).
Disclosure to bankrupt’s creditors
The creditors are notified in writing of the bankruptcy as soon as possible by the bankrupt’s trustee and will be informed of the assets and liabilities disclosed by the bankrupt in their statement of affairs. Creditors should provide to the trustee information about any assets the debtor has not disclosed.
Opening a bank or cheque account
With the agreement of the financial institution, a bankrupt can open a bank account (including a cheque account).