Can I Travel Overseas If I’m Bankrupt?
It is not uncommon for us to receive queries about travelling abroad and about the rules of engagement when international travel is required by the insolvent party. We always help guide all our clients on all the acceptable and preferably avoidable aspects that international travel could hold during a Bankruptcy process.
Yes, You May Travel, But You Must Follow Due Process
We always stress to clients that there is no shame in declaring yourself Bankrupt or land up in a Bankruptcy process. Often clients will ask if they will be permitted to travel abroad whilst in the midst of their Bankruptcy process.
The answer is simple, yes you may. The only thing you would need to do is put the travel request to your appointed Trustee. It is also in your best interest to do so in writing or at least do a follow up email confirming any agreement about travel discussed with your Trustee.
If you’re struggling and don’t know where to start, contact Andrew today for a free consultation.
Things to Be Careful of When Requesting to Travel Abroad
Bankruptcy is a legally mandated process and all parties must ensure that they follow due process throughout the entire endeavor. This will also include not creating enmity by means. Examples of travel related instances that may raise suspicion or discomfort between parties could include the following:
1. Travel For Leisure.
Questions could be asked whether the insolvent party is completely honest about all the assets in possession to pay towards the liabilities that have fallen behind.
2. Travel to Foreign Lands That Could Be Seen As Unusual Destinations With No Clear Agenda.
If you are traveling to an unusual destination, the Trustee and or other aggrieved parties will be raising a red flag with regards to the true intent of your travel. This is especially true when travelling to countries considered tax havens or keepers of so-called dirty money. It is in your best interest to stay clear of bringing any doubt into the process.
3. Travel With the Intent to Take Assets Out of Australia.
If you own property overseas and have bank accounts in your name, it might raise suspicion if you go there with no clear business or family related objective. It could be seen that you are trying to avoid paying your creditors.
4. Travel For Non-Essential Purposes.
As much as you are encouraged to continue living a full life while the Trustee assists you in getting your financial affairs back to normality, you will be expected to live within reasonable means. Travelling abroad for things like birthdays, social engagements and weddings could be interpreted as wasteful expenditure. Kindly avoid leisure travel all together until the process has concluded.
5. Travel During Key Court Dates That Pertain to the Bankruptcy.
If there are court dates or any arbitration sessions scheduled for whatever reason, your attendance if required takes top priority. There will be little appetite to entertain any rescheduling of important appointments if your travel arrangements are not absolutely crucial.
Travel Related Journeys That Are Considered Favorably
The one thing we cannot stress enough with clients is for everyone to display an unwavering commitment to give their full cooperation. One commitment that stands out is to pay all debts owed so that you can be declared free from obligation.
If travel abroad means that you will be able to derive any economic benefit, it stands a greater chance of receiving support as it could possibly contribute to the alleviation of the debt burden that is not optimally honored.
Don’t Forget, the Trustee Is Allowed to Say No
Just remember, an appointed Trustee is there to work according to what the law states is expected protocol. The Trustee is therefor an objective outside party that is appointed to perform one function and that is to follow the law by processing a Bankruptcy process in the most effective way possible.
If the Trustee wishes for you to remain in the country for whatever reason, you would need to accommodate this as much as possible. Failure to do so could question your credibility as an insolvent party that is protected by the Bankruptcy Act.
As a Trustee in Bankruptcy, Ross Thomson is often required to think outside the box. As well as creative thinking, Ross brings compassion to the table.
For Ross, it’s important to see the people behind the financial problem –not just numbers.
Ross recently helped a bankrupt client who lives in a retirement village with her seriously ill husband.
The unit she & her husband live in is not owned by them, but subject to a 20-year lease.
The money to be repaid by the management was due only at sale, when the client finally left the retirement village.
Sale of the unit was likely to take several years &, if he did sell the couple’s unit, Ross realised he would be effectively evicting them from their home, without resources or family to help them.
Ross decided to contact the retirement village management & put a proposal to them that they prepay some of the moneys they would otherwise pay the client.
The village management considered the proposal & have agreed to prepay some of the moneys otherwise due.
The client is relieved that she will not be evicted & can now concentrate on helping her husband through his health issues.
The moneys paid represented about 75% of what would have been available to creditors if they waited two years.
It is a win for the client and for the creditors.
I made an appointment with Andrew after finding him on google. I was nervous and apprehensive about what to expect but he made the process of bankruptcy extremely uncomplicated and stress free, allowing myself the opportunity to get the fresh start I was so desperate for. Thank you Andrew I could not recommend you enough.
Making the decision to go bankrupt was not easy however once I had spoken to Andrew i felt all my anxiety disappear. Andrew does not judge you and he has an innate ability to put you at ease. He took care of the whole process for me again reducing the stress involved with completing paperwork.
Thank you very much.
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This was the best investment I have ever made and cannot speak highly enough of Andrew. He doesn't just give excellent service his follow up afterwards is amazing. Thankyou Andrew you made my 'new' life so easy to achieve!
Andrew was very helpful in helping me through the bankruptcy process, as a single mother left with a massive debt from my ex and our previous marriage. I was struggling to keep my head above water on a week to week basis.
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Service was fantastic and he also keep in regular contact with me when everything had been finalised Thanks Andrew! can now get my life back on track.
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Andrew put my mind at ease in one easy appointment. Very satisfied with the outcome and service provided. Highly recommend Andrew.
Andrew was a steadying hand with his advice.Showing that things aren't as bad as first thought nor any obstacle insurmountable. If you have questions needing answers, Andrew is the person to ask. Thanks for your advice Andrew.
Andrew was very knowledgeable, caring, helpful and compassionate when I went and saw him. He made me feel that I wasn’t the loser and failure that I thought I was being. Even down to the box of tissues on the table.. which I needed. Highly recommend to go see Andrew if your struggling. There is life after!
Andrew and his team do an excellent job of helping their clients with bankruptcy advice and it is a pleasure to work with him.
Don't hesitate contacting Andrew, I was stressed, struggled sleeping through debt. Andrew put me at ease. He listened to my situation and we decided on my next move. Andrew is professional and easy to talk too. I would recommend highly to anyone who wants help to give him a call. I appreciate your support Andrew. Regards Brett.
Andrew has given me back my life!!! After living paycheck to paycheck, I didn’t know what to do. Until I made the big step and booked an appointment with Andrew. As soon as I left his office I felt a huge weight lifted!!!
Andrew was prompt, organised, friendly and efficient with the processing of my documents and made everything very simple for me so I didn’t need to deal with the added pressure and stress. Thank you Andrew for allowing me to start afresh and getting it done within a matter of weeks.
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