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QLD Bankruptcy and Directors

Discussion in 'Debt and Bankruptcy Law Forum' started by tamus, 12 July 2015.

  1. tamus

    tamus Active Member

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    Hi, Myself and my wife are both directors of a discretionary trust with a corporate trustee company, that owns the property we live in. We pay the mortgage and have guaranteed the loan. The property has little equity. We understand that when bankrupt, we are no longer able to be directors.

    If we resign as directors before going bankrupt, is the trustee in bankruptcy able to access the former directorships and control the actions of the trust? We are both pensioners and would like to have friendly directors control the trust.
     
  2. Tim W

    Tim W Lawyer

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    Perhaps you are not "directors" of a trust?
    Perhaps you are directors of a company that is a trustee?
     
  3. tamus

    tamus Active Member

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    Thats correct. Sorry, We are directors of the trustee company
     
  4. Tim W

    Tim W Lawyer

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    And are you bankrupt personally, or is the trustee company insolvent?
     
  5. tamus

    tamus Active Member

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    Neither, at present, The trustee company just holds the property. Personal debts for myself and one joint debt with my wife. The joint debt is $30K.
     
  6. Tim W

    Tim W Lawyer

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    And is there some prospect of you (either or both of you) not being able
    to (either) pay this debt, or meet the current payments schedule?
     
  7. tamus

    tamus Active Member

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    I can meet the payments on the trust property, and am paying a small amount off the other loans in my name, about $60K ,but , the joint loan with my wife is with Genworth, and they may not accept the repayment offer I am about to make.
     
  8. Tim W

    Tim W Lawyer

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    So the answer to this question then
    is "yes"?

    Would I be correct in thinking that these debts are personal to you and your wife,
    and have not somehow been incurred in the course of trusteeship?
     
  9. tamus

    tamus Active Member

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  10. Tim W

    Tim W Lawyer

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    I am not clear on the role of Genworth in this scenario.
    I only know them as lenders's insurers...?
     

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