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NSW Bankruptcy - Activities by Bankrupt a Cause for Concern?

Discussion in 'Debt and Bankruptcy Law Forum' started by wal22, 24 October 2015.

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  1. wal22

    wal22 Active Member

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    A friend is having extreme difficulty with a former lover, who is an undischarged bankrupt. I was doing some searches when I discovered the following sequence of events before his bankruptcy.

    This bloke registered a company and he was the only shareholder and company director. The company purchased a property two days later. Two weeks later the same property was sold to someone else for the same price. Eight weeks later, the Bankrupt resigned from the Directorship of this company and a relative was appointed as sole Director. Four weeks after that, he transferred his shareholding to the same relative. The end of the sequence came, when he was declared bankrupt, six weeks later.

    Is it just my suspicious nature, or is this a cause for concern?
     
  2. Sophea

    Sophea Well-Known Member

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    What do you suspect he was doing? It may just be that he was experiencing financial hardship and started juggling assets. There are clawback provisions in the Bankruptcy Act which ensure that any last minute transfers of property can be clawed back by trustees to pay creditors. So anything suss would have been sorted out by his trustees.
     
  3. wal22

    wal22 Active Member

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    I believe he was hiding assets. He has had extensive legal training and is aware of any weaknesses in the system.
     

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