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Bankruptcy and Overseas Travel

Many people ask about overseas travel when they enter into bankruptcy.

Under the Bankruptcy Act, overseas travel needs to be approved by the Bankruptcy Trustee assigned to manage your case.

If you apply to travel overseas, generally, the answer will be “no”.

The simple logic is that if you can afford to travel overseas, why can’t you afford to pay your creditors?

The general ban on overseas travel under bankruptcy has some exceptions:

  • Family emergencies or tragedies when someone else is paying.
  • The travel is for work and the income will  increase the amount of money going to creditors.

It should be the acknowledged that overseas travel under bankruptcy is totally at the discretion of the Bankruptcy Trustee. Even if there is a family tragedy or you have to go on an important business trip, the bankruptcy trustee can say no and their decision is binding. You can appeal through the Administrative Appeals Tribunal.

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