NSW Can Family Still Buy Assets During My Bankruptcy?

[Toma]

Hi ,

I am going to be declaring bankruptcy. I had my business and debt incurred 2-3 years ago and I can't make the payments anymore and will declare bankruptcy.

My question is, if any of my family members buy a property during my bankruptcy, would that be questionable by my creditors or trustee?

Thanks

 

[kevin586]

Highly unlikely; There is a universal principle that one person cannot be made to pay the debts of another. If the property is owned by someone other than you, and you are the only person in the family who is in bankruptcy then I cannot see how any creditor or collector can go after you for it. Similarly, provided the property is in the names of the other family members and not yours then they cannot be held responsible for your debts either.

Its only where you have equity (part ownership) in the property where your at risk.

If by property, you mean real estate, as in the form of land or a home of some sort then I would ask a settlement agent this question. You states land settlement agency may well have something on this on their website

 

[Tim W]

I'll assume here that you are indeed bankrupt,
rather than involved with, say, a company that is insolvent.

Look at it this way. You're the bankrupt, not them.

But, know this -> Using your family members
to conceal what are in fact your transactions,
or indeed, your money or other assets,
will not end well, for either you or them.
So don't.