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FAQ In Bankrupcty

Frequently Asked Questions in Bankruptcy 

Below are some of the common questions we often receive with respect to Bankruptcy:

Bankruptcy Period

Your Bankruptcy last 3 years and 1 day from the lodgement of your Statement of Affairs with the Official Receiver (subject to ongoing compliance with your Trustee).

A Trustee may lodge an objection extending your bankruptcy up to 5 years or 8 year (subject to ongoing compliance with your Trustee).

How much money can I earn whilst Bankrupt?

The Bankruptcy Act does not restrict on earning capacity of a Bankrupt. However, your income will be subject to an assessment by the Trustee (at each bankruptcy anniversary year) in order to determine any statutory contribution to your Bankruptcy Estate. A comprehensive explanation of the income regime whilst bankrupt can be found in our previous article.

The AFSA website has a handy summary, and a simple Income Contributions Calculator on it’s website:

Credit Report

Your credit report will continue to show your bankruptcy for either:

  • 2 years from when your bankruptcy ends; or
  • 5 years from the date you became bankrupt (whichever is later).

Further information regarding your credit report can be found on ASIC MoneySmart website.

Can Trustee fix (repair) my Credit Report

No. Nor it's Trustee’s responsibility to fix something existing in your report such as wrong debt, name or date of birth. You should contact a credit reporting agency to make such repairs.

Whilst there are agencies that claim be able to fix your credit report, ASIC MoneySmart strongly suggest against it.

Further information regarding your credit report can be found on ASIC MoneySmart website.


You must request permission from your Trustee to leave Australia. Generally, travel will be granted by the Trustee subject to your statutory compliance, and you are not required to pay any additional fees to the Trustee (unless your bankruptcy is being managed by the Official Trustee).

 It is a serious offence under the Bankruptcy Act to leave Australia without your Trustee’s permission.

 You can travel within Australia without your Trustee’s permission.

Bank Account

You are permitted to maintain your existing or open new bank account.

 Most financial institution will cancel your existing credit facilities such as credit cards and personal loans as the outstanding balance will be provable debt in your bankruptcy.

Communication with Creditors

Generally, all your disclosed creditors will be notified your bankruptcy within days of your filing for bankruptcy. Should you continue to receive phone calls and/or correspondence from your creditor you should notify your Trustee.

Tax Refunds

Tax refunds of income tax that relate to income earned before bankruptcy are assets that vest in the Trustee. A receipt of such funds should be referred immediately to the Trustee.

Tax refunds that relate to income earned after the date of bankruptcy are included in assessable income pursuant to section 139N of the Act

How can we help

Should you wish to discuss your circumstance please contact our office, or please call Abdul Chambal on 0402 763 883, Bill Cotter on 0413 885 888 or Roland Robson on 0412 982 859

Ready to Make a Change?

 07 3270 8500