QLD Bankruptcy and Directors

[tamus]

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.

 

[Tim W]

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

 

[tamus]

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

 

[Tim W]

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

 

[tamus]

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.

 

[Tim W]

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?

 

[tamus]

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.

 

[Tim W]

So the answer to this question then

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?

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?

 

[tamus]

Yes

 

[Tim W]

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