Hi there. When a person becomes involved in bankruptcy proceedings in Australia, any actions that they take, or have recently taken, are likely to be closely scrutinised by a court. This is because a person, upon becoming a bankrupt, has certain responsibilities under Australian laws. If they fail to comply with these laws, it can lead to criminal penalties.

As you said you have been served a letter to appear in court, it appears that your state of bankruptcy is imminent. Attempting to sell any property that you own can lead to the issuing of a warrant for your arrest if a court becomes aware of your plans. If the property has already been sold, you will need to disclose these transactions, and any others that have occurred within the past two years, when you attend court. Failing to do so is a serious offence that can result in a criminal penalty of up to one year imprisonment.

If you have spent, hidden, or otherwise no longer have, the money received from the sale of property, failing to adequately explain what you did with the money may result in your state of bankruptcy being extended for up to eight years.

Suggested way forward

Actions taken before you are legally declared bankrupt may still be scrutinised by a court, especially if it involves the sale of property. You should speak to a lawyer about your legal rights and the best way to handle your bankruptcy proceedings. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.