QLD Buying a Family Member a Car While Bankrupt?

[hannibal30]

Hi, I am currently bankrupt, and need help. I’m making all the necessary monthly contributions to the trustee and doing everything above board. Question is, my elderly mother needs a car and I do have enough money in my normal savings account to buy her one. Can I do this or will the trustee try to take it from her?
Is it possible to gift her the money if I can’t buy her the car?

As above I’m meeting all obligations with the trust so any help would be appreciated.

Thanks.

 

[Tim W]

I suggest that your first port of call here is your trustee.
At the very least, you are obliged to disclose to them
that you have this extra money.

 

[hannibal30]

I suggest that your first port of call here is your trustee.
At the very least, you are obliged to disclose to them
that you have this extra money.

Thanks Tim, Under the bankruptcy legislation a bankrupt is allowed to save money in their primary bank account. It is when the money is moved that the trustee may have a claim to the money. Essentially as long as I’m am meeting my obligations I can save as much money as I want however it is how that money is spent that is the issue.

 

[Tim W]

Certainly you can accumulate personal savings during bankruptcy,
and you can make bona fide cash gifts.
Sounds like you understand about thresholds and all that stuff.

I suggest however that your trustee might look differently at ten grand on a used Corolla
compared to a hundred grand on a brand new BMW.
And you should at least ensure that they have no objection to what you propose.

 

[hannibal30]

Thanks for your replies Tim, I will touch base with the trustee to clarify the finer details. Appreciate your help.
Cheers

 

[kevin586]

Can you go through a 3rd party?

 

[Scruff]

Can you go through a 3rd party?

That would definately raise the Trustee's eyebrows.

 

[patrik6]

I thought a bankrupt could earn close to 50k a year and anything over that the trustee takes 50% so if you earn $2000 a week, you get to keep $1500 enough to buy a house and car.