Obtaining Credit Without Disclosing Bankruptcy

It is an offence for an undischarged bankrupt who is a party to a debt agreement to obtain more than $3000 credit without disclosing their status as a bankrupt. The Maximum penalty for this offence is three years imprisonment.

What court will hear the matter?

This matter can be dealt with in either the Magistrates Court or District Court.

Common ways this offence occurs

Some commons ways this offence can occur are:

  • A person applies for a credit card and doesn’t inform the credit provider that they are a bankrupt;
  • A person leases or finances a car without telling the dealership that they are a bankrupt.

What must be proven

For a person to be found guilty of this offence it must be proven:

  • That they are a bankrupt;
  • That they obtained credit above the indexed amount;
  • That they did not tell the credit provider that they were a bankrupt.

The Legislation

It is an offence under Section 269 the Bankruptcy Act to obtain credit without disclosing your bankruptcy.

If you require legal advice or representation in any legal matter, please contact Armstrong Legal. 


If you suspect that you may be under investigation, or if you have been charged with an offence, it is vital to get competent legal advice as early as possible. Our lawyers are highly specialised in corporate crime and will be able to guide you through the process while dealing with the various authorities related to your matter.


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