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NSW Bankruptcy - What Happens to Debt if Trustee Fails to Recover Money?

Discussion in 'Debt and Bankruptcy Law Forum' started by TebetMonkey, 20 January 2016.

  1. TebetMonkey

    TebetMonkey Member

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    J is in bankruptcy. W owes J money. The Trustee has failed to recover the money from W. J is about to leave bankruptcy. If the Trustee does not recover the debt, is that debt forgiven and not due and payable once J's bankruptcy is discharged? Can J then go and collect the amount of money owing, or does the Trustee still try and recover this money even though J has been discharged?
     
  2. Sophea

    Sophea Well-Known Member

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    The debt would remain owing - it is not cancelled. I'm not sure whether the Trustee would try to collect the recovered debt after discharge though.
     
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