Many people wonder what can and can't a bankrupt individual do when they are declared bankrupt?

Bankruptcy has serious effects on the individual.  Upon becoming bankrupt almost all of their property goes to (‘vests in’) the persons Trustee in Bankruptcy.

It is then an offense for an undischarged bankrupt person to engage in the following:

a)    Obtain credit or enter a commercial transaction for value in excess of $4,623.00 without disclosing that they are bankrupt.
b)    To carry on a business under an assume name without disclosing the true name and status of bankruptcy.
c)    May not leave Australia or do any act to prepare to leave Australia without the permission of the persons Trustee in Bankruptcy.

Property acquired by the person after being made Bankrupt but before being discharged from Bankruptcy is generally divisible among creditors.

If the bankrupt was in a partnership this partnership is automatically dissolved by becoming bankrupt unless specifically agreed in the partnership agreement to be otherwise.

The bankrupt cannot be:

a)    A director of a company.
b)    A member of the Local Council, a Member of House of representatives or the Senate or a member of the State or Territory Houses of Parliament.
c)    Any civil action commenced by the bankrupt (before they became bankrupt) is “stayed” until the Trustee elects to pursue or discontinue the action.

See also What is Bankruptcy?