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 (Cth) ss 149A-D].

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 creditors 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 $4669 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
Objections to discharge  :  Last Revised: Thu Jul 16th 2009
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