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ARTICLE · 23 OCTOBER 2026

Bankruptcy Restrictions In Australia

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Bankruptcy restrictions in Australia govern what undischarged bankrupts can and cannot do during the typical three-year bankruptcy period. While most people can continue working and earning income, they must obtain written trustee consent before overseas travel, disclose bankruptcy for transactions above the indexed threshold, and refrain from managing corporations without court leave. Understanding these restrictions—from employment and business operations to credit disclosure and asset dealings̵

AustraliaInsolvency/Bankruptcy/Re-Structuring
Wayne Davis
Wayne Davis
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Article Summary

Bankruptcy restrictions in Australia govern overseas travel, company management, credit, business dealings and cooperation with the trustee. Most people can continue working, operate as sole traders and travel within Australia. Overseas travel requires written trustee consent, including before preparatory acts such as purchasing flights. An undischarged bankrupt cannot manage a corporation without court leave. Income reporting, assessed contributions and business-name disclosure obligations may also apply.

Borrowing is not automatically prohibited. As checked on 5 October 2026, bankruptcy must be disclosed for specified transactions at or above the indexed threshold of $7,457, including some customer deposits. Bankruptcy ordinarily lasts three years and one day, but an effective objection can substitute a five- or eight-year period. Discharge ends many restrictions without automatically returning vested assets or extinguishing existing assessed contributions.

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