QLD Buying a Family Member a Car While Bankrupt?

Discussion in 'Debt and Bankruptcy Law Forum' started by hannibal30, 4 December 2018.

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  1. hannibal30

    hannibal30 Member

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    Hi, I am currently bankrupt, and need help. I’m making all the necessary monthly contributions to the trustee and doing everything above board. Question is, my elderly mother needs a car and I do have enough money in my normal savings account to buy her one. Can I do this or will the trustee try to take it from her?
    Is it possible to gift her the money if I can’t buy her the car?

    As above I’m meeting all obligations with the trust so any help would be appreciated.

    Thanks.
     
  2. Tim W

    Tim W Lawyer
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    I suggest that your first port of call here is your trustee.
    At the very least, you are obliged to disclose to them
    that you have this extra money.
     
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  3. hannibal30

    hannibal30 Member

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    Thanks Tim, Under the bankruptcy legislation a bankrupt is allowed to save money in their primary bank account. It is when the money is moved that the trustee may have a claim to the money. Essentially as long as I’m am meeting my obligations I can save as much money as I want however it is how that money is spent that is the issue.
     
  4. Tim W

    Tim W Lawyer
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    Certainly you can accumulate personal savings during bankruptcy,
    and you can make bona fide cash gifts.
    Sounds like you understand about thresholds and all that stuff.

    I suggest however that your trustee might look differently at ten grand on a used Corolla
    compared to a hundred grand on a brand new BMW.
    And you should at least ensure that they have no objection to what you propose.
     
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  5. hannibal30

    hannibal30 Member

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    Thanks for your replies Tim, I will touch base with the trustee to clarify the finer details. Appreciate your help.
    Cheers
     
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