Obtaining Property by Fraud as a Bankrupt

The Maximum Penalty for the offence of obtaining property by fraud as a bankrupt is three years imprisonment.

What court will hear the matter?

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

Common ways this offence occurs

This offence commonly occurs in the following situations.

• A person applies for a credit card and when asked whether they’re an undischarged bankrupt, says no;
• A person purchases goods on credit and doesn’t inform the company of their bankruptcy.

What must be proven

For the court to find a person guilty of this offence it must be satisfied:

• That the accused is a bankrupt;
• That they obtained property or credit;
• The obtaining of the property or credit was dishonest.

The legislation

It is an offence under the Bankruptcy Act to obtain property or credit by fraud after becoming a bankrupt.

If you think you may have breached a law or regulation in your role as an employee or company director, you should seek legal advice. Talk to our team of specialist corporate crime lawyers today.