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NSW Liquidation and Bankruptcy - Can They Put a Claim on My House?

Discussion in 'Debt and Bankruptcy Law Forum' started by Cavalier, 2 February 2016.

  1. Cavalier

    Cavalier Active Member

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    My wife's Pty company went into voluntary liquidation resulting in her personal bankruptcy. As we had both been through a bad separation before, we kept everything separate (her business / my assets).

    Due to the bankruptcy, she now is living in my house purchased by me and solely in my name. They contacted her today claiming that they intend to put a claim on my house. Is this permitted?

    Regards
     
  2. Sophea

    Sophea Well-Known Member

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    Hi Cavalier,

    No, your trustee in bankruptcy can only take assets that belong to you. So if you owned a share in the property your share would vest in the trustee however if the property is owned solely by your partner then they can't touch it. That is, unless you sold it to him for below market price just prior to going bankrupt.

    Your trustee has powers to investigate assets you owned before your bankruptcy. If you have given away or sold assets for less than their value prior to bankruptcy, the trustee may either recover these assets (that is, take possession of them and deal with them) or the difference between the true value of the asset and the amount you received for it. These types of asset transfers are called antecedent transactions.
     
  3. Rod

    Rod Well-Known Member

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    Unlikely. Did you provide any guarantees to her company debtors? (eg guarantee a bank loan)

    Did you purchase any share of the house from your defacto?

    Who are 'they'?

    I'd be writing to them, with a copy of their correspondence, saying 'they' and their directors will be held jointly responsible for all your costs fighting their claim against any of your property.
     
    Wiggins likes this.
  4. Cavalier

    Cavalier Active Member

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    Thank you for the quick response.

    To clarify, the business was in Brisbane and the house I bought is in NSW. Due to the circumstances, and as we are still very amicable, I suggested she move here as this allows time with my children. And I stay here when I'm not working away.

    I bought the house after the liquidation of her company was in progress and she declared personal bankruptcy after moving here on advice after realising the situation she was in.

    There are no guarantees of any kind signed by me, for or on behalf of her company.

    I believe that I'm doing the right thing, however, I don't wish to end up in the same place as before and lose everything.

    Regards
     
  5. Rod

    Rod Well-Known Member

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    This question is unanswered:

     
  6. Cavalier

    Cavalier Active Member

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    Thanks, Rod

    No I did not - it was a fresh purchase once I moved here.
     

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