Can Bankruptcy take money I receive from partners death?

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

Lisa Stewart

Member
24 June 2015
4
0
1
My partner of 6.5 years passed suddenly , aged 44 in December 2014. He died "intestate"At this time I was in Bankruptcy (due to bad luck and not poor moneymanagement). I was discharged from Bankruptcy over 18 months ago (November 2015) and I am finally about to receive my hubby's superannuation funds. My Solicitorwho has verbally stated that he is "no bankruptcy solicitor", is telling me I will "probably" have to pay Bankruptcy back, out of the funds I receive. I have continually questioned this as I am receiving funds 18 months after discharge. Solicitor states that because I was still in Bankruptcy when hubby died, the superannuation money I receive, "may" still vest in Bankruptcy Trustee. I have tried researching this and I have found lots of information stating that this money is now "off limits" to Bankruptcy. I have received so much conflicting information and my Solicitor has now told me to get independent legal advice if I am not happy with what she has told me. So now I have to take this to a solicitor who actually has knowledge of Bankruptcy and can hopefully tell me exactly where I stand. I have been through so much in the last 2.5 years and the continued delays I have faced in finally getting super paid out are truly unfathomable. This is now another delay. The point is that my solicitor cant seem to give me a definite answer and seems very unsure himself. If Bankruptcy are legally entitled to take some of this money then I accept that but am I being advised correctly by my solicitor?? What if Bankruptcy are not entitled to it but my solicitor hands it over to them anyway? I would be so very grateful is someone could help me with some straight answer.
 

Matt King

Well-Known Member
8 February 2017
26
4
124
53
Sydney and Wollongong
It all depends on the circumstances, for example I recently advised a client in relation to a personal injury award and that the Trustee was not entitled to claim them from her.