Objections to discharge

Objections may be lodged by the trustee on a number of grounds which will extend the period of bankruptcy to a total of five or eight years [Bankruptcy Act 1966 ss 149A-D].

From 5 May 2003, where the ground for lodging an objection relates to uncooperative conduct by the bankrupt (one of the ‘special grounds’ listed in the Act), the trustee will not have to provide a reason for lodging an objection. Previously, the trustee always had to provide reasons.

A bankruptcy will be extended to five years if the bankrupt failed to:

disclose a debt existing at the date of bankruptcy
advise the trustee of any change of name, address and telephone number [s 80]
sign a document at the trustee's request
attend a meeting of creditor without reasonable excuse or approval of the trustee
attend an interview or examination without reasonable explanation
disclose an interest in property.

A bankruptcy will be extended to eight years if the bankrupt:

left Australia and did not return
failed to return to Australia despite being asked to do so by the trustee
unlawfully continued to manage a corporation
obtained goods, services or money to a value of $3951 or over without disclosing the bankruptcy
disobeyed a request from the trustee for information about property or income
did not disclose a source of income in their statement of affairs or during the bankruptcy [ss 6A(1),139U]
failed to pay contributions to the trustee or explain how money was spent.
failed to explain adequately the disposal of property
failed to explain the purpose for which money was spent