Discharged from Bankruptcy but Still Listed on Mortgage?

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13 May 2014

In January 2011 I declared bankruptcy. Part of my bankrupt estate was a property I held in in joint with my ex-partner on the Gold Coast. This property has a mortgage over it held by CBA. My bankruptcy ended on 15 January 2014.

The trustee gave the co-owner (my ex-partner) the opportunity to buy the estate's interest in the property for $2,000 which he did. This whole time I have still been on the mortgage and also the title as my ex-partner didn’t bother about re-financing the property in his name during the period I was bankrupt.

I conducted a title search yesterday that shows I’m still a registered owner as joint tenants. The title also shows that the trustee lodged against the property in December (one month before my bankruptcy was discharged) a ‘Request to record transmission by bankruptcy’-Form 14 and then the next day a Transfer – Form 1 transferring the trustees interest to my ex-partner. I have attached the documents.

My ex-partner failed to refinance the mortgage in his own name and as it stands I am still listed on the mortgage as joint with my ex-partner with the Commonwealth Bank and I am still on the title as joint owner. I would have thought that it should have been enforced by ITSA to ensure my ex-partner refinanced the property in his own name simultaneous with the transfer of the property for the $2,000 consideration.
I have spoken to ITSA and have been advised that as far as they are concerned the trustee doesn’t have any interest in the property any more as my bankruptcy has been discharged and told me that I should seek advice as to what my entitlements are over the property.

My main question is what rights do I have with the mortgage and the property title that I am still a joint owner/mortgagor of the property. Do I have any entitlements? i.e. Do I have any monetary entitlements if the house is sold? I would assume my ex-partner will not be able to sell the property whilst we still have the mortgage without my signature. Otherwise I really just want to get myself off the mortgage if I don’t have any interest/entitlements in the property.

No one at ITSA seems to know what is meant to happen and just passes the buck to the bank and vice versa.

Many thanks in advance.


Well-Known Member
25 April 2014
Hi Jess,
Its surprising that nobody at ITSA or CBA have been able to help resolve this issue.

I think you technically have the same rights and obligations with the mortgage and property title as you had before as it appears nothing was changed or lodged to make the change?

Do you have the kind of relationship with your ex partner where you can remind him that he needs to refinance the property in his own name and lodge the transfer in accordance with the ITSA arrangement? Perhaps you could get someone at ITSA (now called AFSA?) to speak to him and give those instructions on your behalf. If whoever you’re dealing with at AFSA isn’t helpful, you could go through their Complaints Handling Procedure.

The same could be done with CBA, and if nobody is helpful, you might like to speak with the Financial Ombudsman Service (http://www.fos.org.au/).

Which State are you located in? Have you contacted your local Legal Aid about it? They might also be able to bounce ideas with you.