Don’t Commit an Offence whilst bankrupt
Be careful not to inadvertently commit an offence whilst you are bankrupt. Committing an offence whilst you are bankrupt could lead to your bankruptcy being extended for up to 5 or 8 years and in some cases can lead to a prison sentence and or a fine.
Listed below are some offences described in the Bankruptcy Act:
- Failing to inform your trustee of your current address
- Failing to fully disclose all assets and liabilities in your Statement of Affairs
- Concealment of property
- Swearing a false affidavit
- Failing to attend Court when summonsed
- Refusal to provide information to your trustee
- Failing to provide truthful and straightforward answers in the course of an examination
- Disposal of an asset or creation of a charge over an asset whilst bankrupt
- Provides a false declaration whilst bankrupt
- Obtains credit over the prescribed value without disclosing your bankrupt status
- Failed to maintain proper books and records 5 years proceeding bankruptcy
- Engaged in hazardous gambling 2 years proceeding bankruptcy
- Left Australia without permission to defeat creditors
- Failed to maintain proper books and records whilst bankrupt
If your trustee becomes aware of any offence the trustee must report the offence to ITSA who may in turn refer the matter to the Director of Public Prosecution. Certain offences can carry prison sentences. Some offences can also lead to your bankruptcy being extended for up to 5 or 8 years. Click here to learn how your bankruptcy can be extended for up to 5 or 8 years.
