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What counts as a bankruptcy offence

By Administrator 14 March, 2013

It is very important that you be aware of offences in bankruptcy. Some bankruptcy offences can lead to prosecution and imprisonment or fines.

It’s important to know what counts as an offence in bankruptcy. Below is a list of the more common bankruptcy offences:

  • makes a false statement in an affidavit (Sec 263A of the Bankruptcy Act).
  • a creditor proving a false voting document or proof of debt (Sec 263C of the Bankruptcy Act).
  • fails to attend a public examination (Sec 264A of the Bankruptcy Act).
  • refuses to answer a question at a public examination (Sec 264C of the Bankruptcy Act).
  • fails to provide information relating to property (Sec 265 (a) of the Bankruptcy Act).
  • fails to disclose information relating to property disposed of 2 years prior to bankruptcy (Sec 265(b) of the Bankruptcy Act).
  • fails to deliver up books and records as requested (Sec 265(c) of the Bankruptcy Act).
  • fails to provide any information about the examinable affairs (Sec 265(ca) of the Bankruptcy Act).
  • fails or refuses to tell where the books and records relating to the examinable affairs (Sec 265(d) of the Bankruptcy Act).
  • fails to inform the trustee in bankruptcy if the bankrupt knows that a proof of debt filed by a creditors is false (Sec 265(g) of the Bankruptcy Act).
  • fails to provide a full explanation in the loss or depreciation of assets within 2 years of bankruptcy (Sec 265(h) of the Bankruptcy Act).
  • conceals a debt or asset (Sec 265(4)(a)&(b) of the Bankruptcy Act).
  • conceals, destroys or falsifies books and records (Sec 265(4)(c) of the Bankruptcy Act).
  • grants security over assets that were purchased on credit when and remain unpaid for (Sec 265(4)(e) of the Bankruptcy Act).
  • obtains property by fraud (Sec 265(5) of the Bankruptcy Act).
  • fails to deal with Trustee in Bankruptcy notice issued under Sec 77 (Sec 265A of the Bankruptcy Act) or provides misleading response.
  • provides a false declaration (Sec 267 of the Bankruptcy Act)

Your trustee will report any of these offences to AFSA.  Once reported to AFSA, they may prepare a prosecution referral to the Director of Public Prosecutions and if the offence carries a prison sentence you could be imprisoned..