This is another advantage of entering into a Debt Agreement compared to bankruptcy. If you wish to travel overseas whilst subject to a Debt Agreement, you will be pleased to learn that there are no restrictions on you at all, i.e. you are free to travel as you wish.

If you went bankrupt (instead of entering into a Debt Agreement), you need to obtain the permission from your Trustee in Bankruptcy prior to travel. Your Trustee in Bankruptcy may only provide you with the permission to travel if you meet certain conditions. These conditions may include:

• Providing a bond prior to travel;
• Providing a detailed itinerary and contact contacts whilst you are abroad;
• Insisting that any task you have been asked to address has been completed (these may include; delivery of your books and records, completion of income contribution assessment questionnaires, or payment of any outstanding income contributions).

You should also be aware that the granting of permission to travel whilst bankrupt is a matter of discretion for the Trustee in Bankruptcy. The freedom to travel overseas whilst bankrupt should not be regarded as a “right of the bankrupt”. This is particularly relevant for bankrupts with more complicated cases. If your Trustee in Bankruptcy feels you are a “flight risk” they may also place you on the “airport watch list” which is closely monitored by the Australian Federal Police. It is possible to be removed from the aircraft by the Australian Federal Police prior to departure if you don’t have your Trustee’s permission to travel.

You can clearly see that entering into a Debt Agreement will allow you to avoid this very inconvenient step of having to apply for permission prior to international travel.

If you want more advice on a Debt Agreement call our friendly and professional debt consultants on 1800 653 485.