QLD Inheritance when bankrupt

Discussion in 'Debt and Bankruptcy Law Forum' started by Brad77, 18 November 2018.

  1. Brad77

    Brad77 Member

    Joined:
    18 November 2018
    Messages:
    3
    Likes Received:
    0
    I am currently bankrupt and my father passed away within 180 of filing for bankruptcy and has left me a large sum of money. I understand the legal side that my inheritance goes to my bankruptcy trustee to pay the creditors but my question is how can I stop losing all my inheritance to my bankruptcy trustee? Is there any way I can forfeit my inheritance after the fact or is there anyway I can not disclose my inheritance and put it in a trust for my child,
     
  2. Rob Legat - SBPL

    LawTap Verified

    Joined:
    16 February 2017
    Messages:
    1,429
    Likes Received:
    286
    No, and no. These will be offences under the Bankruptcy Act. Look at it as the opportunity to pay the debts you incurred. Bankruptcy should be walking away from debts because you can't do anything else - not because you simply don't want to to pay them.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  3. Toma

    Toma Active Member

    Joined:
    27 September 2018
    Messages:
    8
    Likes Received:
    0
    Hi,
    I am also currently bankrupt.
    I made some research before bankruptcy and whatever is the inheritance trustee will take it however i heard one option for this , declining the inheritance then it will pass to other beneficiaries.

    Once you are out of bankruptcy then the other beneficiaries can give your part.

    And hopefully, one year discharge of bankruptcy will be introduced soon because i may be in the same situation as you are in.
    I hope you solve the issue as it will be devastating to lose the inheritance
     
  4. Toma

    Toma Active Member

    Joined:
    27 September 2018
    Messages:
    8
    Likes Received:
    0
    Hi Rob,

    I see your posts about bankruptcy regularly.
    May i ask ,
    1) do you think 1 year bankruptcy will be introduced soon? If so when?
    2) if i buy a property with my partner me owing %1 , can trustee claim on this and sell the property without permission of the other owner?
    Thanks
     
  5. Rob Legat - SBPL

    LawTap Verified

    Joined:
    16 February 2017
    Messages:
    1,429
    Likes Received:
    286
    1. No idea. The Bill appears to have stalled in the Senate. There was a recommendation to proceed with it, noting some concerns from ASIC about company directorships, but nothing further has happened. I'm guessing it's not high on the government's agenda at the moment. The Bill was introduced while George Brandis MP was A-G, and he was replaced by Christian Porter MP shortly thereafter. It's possible the current A-G isn't a fan of the reform and isn't pushing it. The other possibility is there is some intense lobbying going on against it, keeping it down on the list of business (a common, but not generally known, way of dealing with proposed legislation). Or, they've just got bigger things on their mind. There's some further information about it here: Bankruptcy Amendment (Enterprise Incentives) Bill 2017 – Parliament of Australia

    2. Yes. See here: What can be taken or sold in bankruptcy? | Australian Financial Security Authority and What happens to my house? | Australian Financial Security Authority
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  6. Brad77

    Brad77 Member

    Joined:
    18 November 2018
    Messages:
    3
    Likes Received:
    0
    Hi Rod
    Yes I understand all that but I file for bankruptcy for a value of $35k but if I was to pay it out then I have to pay $90k. That’s all my inheritance gone. I wasn’t born with a golden spoon in my mouth or have a trust fund left for me. I will never see that kind of money in my life again. It’s all my parents left me and I don’t want to lose it. It’s all I have. Is there anything I can do? Please.
     
  7. Rob Legat - SBPL

    LawTap Verified

    Joined:
    16 February 2017
    Messages:
    1,429
    Likes Received:
    286
    You might want to check those figures. Your bankruptcy shouldn’t increase the debts like that.

    Your two options are to disclose the inheritance to your bankruptcy trustee, or don’t - and break the law. It’s that simple, really.

    Think of it like getting the inheritance right when you need it to pay the debts. Or even getting a loan from your parents instead of incurring the debt in the first place.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  8. Brad77

    Brad77 Member

    Joined:
    18 November 2018
    Messages:
    3
    Likes Received:
    0
    Hi Rob
    I understand all that and what is legal and should be done. Yes I should be doing that but what I’m looking for is a way around that. If I was to get a lot more then I would be willing to pay out the creditors. This is a lot of money to me and a life changing event for me. Is there anyway around it. What if I signed a stat dec waving all my rights to any inheritance stating I don’t want or need it?
     
  9. Rob Legat - SBPL

    LawTap Verified

    Joined:
    16 February 2017
    Messages:
    1,429
    Likes Received:
    286
    So you're saying you understand what you should legally be doing, but you're asking for a way to evade your legal obligations? In a public forum, no less?

    In order of importance:
    Firstly, I won't help anyone break the law. That's completely contrary to my obligations under the Solicitor's Conduct Rules.
    Secondly, it's morally wrong - they're your debts, wear the consequences to the extent legally required.
    Thirdly, I'd be sticking my neck in a noose (professionally speaking) to go anywhere near helping someone evade federal law in a public forum to which my name is attached.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
Loading...

Share This Page

Loading...
gt;