Can Bankruptcy take money i received from partners death?

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Lisa Stewart

Member
24 June 2015
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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 money management). I was discharged from Bankruptcy over 18 months ago (November 2015) and I am finally about to receive my hubby's superannuation funds. My Solicitor who 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 answers. :(
 
Hi Lisa

Generally speaking, as the intestate estate vested in you before you were discharge the trustee can access these funds (depending on the date of probate). Typically, the Trustee can delay you being discharged if they need longer to continue distributing assets after discharge. This can happen for several reasons, and waiting for money from an estate that vested during bankruptcy is a valid reason.

You should ensure you have knowledge of the correct amount of debt owed to ensure the Trustee only takes what is outstanding and their fees.

I recommend making an appointment with a debt recovery lawyer to sit down and ensure you do not end up paying for liabilities you do not need to.