WA Bankruptcy - Will It Affect My Husband?

Hi Hopeless,

I'm sorry to hear about your situation. Generally speaking, if you go bankrupt, your trustee in bankruptcy can only come after assets that you own. That is assets you own by yourself individually and those that you may own jointly with your husband. Therefore, if you jointly own the house with your husband then the trustee is entitled to your half share of the property, but he would have the option to buy out your half share from the trustee etc.

It would only be in the case that you have disposed of your assets within 3 years ago in order to defeat your creditors, that the trustee may have grounds to claw back assets that were transferred from you to your husband as well.

As a matter of course, the following assets would vest in your trustee - meaning the trustee has power to deal with the asset(s), take physical possession of and control of the assets, including the right to sell them.

• houses, apartments, land, farms and business premises (including leases)
• motor vehicles (other than exempt ones)
• shares and other investments (including shares held in your employer’s business)
• tax refunds for income earned before you became bankrupt
• proceeds of a deceased estate where the person dies before or during your bankruptcy
• lottery winnings and other competition prizes.

Here is an article which talks about some other consequences of bankruptcy: Bankruptcy - What Does It Mean For You? - Legal Blog - LawAnswers.com.au