What are my obligations?

What are my obligations?

Now that you're bankrupt, you will no longer need to pay most of your debts. You can begin to rebuild your financial future. During bankruptcy you have certain obligations and may face some restrictions.

It is your obligation to tell your trustee when your circumstances change. You must inform your trustee if you:

• change your name, address, income or employment
• forgot to include debts or assets in your bankruptcy application
• buy or gain new assets (e.g. house, car, winnings)
• receive an inheritance (could be money or other assets).

You also have the following responsibilities.  You must:

• request permission from your trustee to travel overseas
• reveal your bankruptcy if you apply for credit over a set amount
• disclose your bankruptcy if you trade under a business name that doesn't contain your name
• provide information to your trustee regarding your finances (such as income and mortgage statements)
• lodge your statement of affairs within 14 days (of notification of bankruptcy) if you've been made bankrupt by a creditor.

There may be penalties if you don't comply with the above obligations and restrictions. In some cases, your trustee may extend your bankruptcy.

For more information see: Can my trustee extend my bankruptcy?

Bankruptcy can impact any legal matters

If you're involved in any legal action, you need to inform your trustee. If you have a pending court case, you should contact the court to confirm whether you must still attend.

Family law court matters

If you are attending court for a family law matter where either yourself or the other party are bankrupt (or considering entering bankruptcy), it is strongly recommended that you obtain independent legal advice.

For help finding a lawyer, visit the Federal Circuit and Family Court of Australia.

If you are currently bankrupt or in a personal insolvency agreement, you must notify:

• the Federal Circuit and Family Court of Australia at the start or during any family law case you are involved in.
• your trustee if you become involved in family law property settlement proceedings.

Where the family court grants an order relating to property settlement proceedings, any person who has an interest in the property can apply to have the order set aside or varied.

For example, a creditor may apply to have an order set aside or varied if the order would prevent them from recovering the debt owing to them.

Read more about Finances and property: Bankruptcy in family law.