LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

NSW Possible to Formalise Debt Made 10 Years Ago?

Discussion in 'Debt and Bankruptcy Law Forum' started by Zoran Nikolovski, 7 September 2016.

  1. Zoran Nikolovski

    Joined:
    7 September 2016
    Messages:
    2
    Likes Received:
    0
    I borrowed money from my parents under a verbal loan agreement around 10 years ago and have now been declared bankrupt. Can we formalise a loan agreement in writing now to submit as proof of debt to the bankruptcy trustee or is it too late now?
     
  2. DMQC

    DMQC Well-Known Member

    Joined:
    29 June 2016
    Messages:
    40
    Likes Received:
    4
    It depends if it was a loan or if they simply let you borrow the money and you were only to pay back the principal amount.
     
  3. Zoran Nikolovski

    Joined:
    7 September 2016
    Messages:
    2
    Likes Received:
    0
    It was a loan with repayments and interest
     
  4. DMQC

    DMQC Well-Known Member

    Joined:
    29 June 2016
    Messages:
    40
    Likes Received:
    4
    In that case, I see two options you could create a written agreement with the dates of the original agreement - since you would only be formalising an agreement that has already been made this would not be deceptive or misleading.

    I would be cautious however not to have your parents investigated by the ATO etc. Since they have made a profit from the loan it would (as far as I am aware) be considered income. If it were considered income by the ATO I would assume they would also need an Australian Credit Licence or similar. I am no expert on the matter but just some food for thought.

    It might be an idea to consider the money your parents gave you as payment for some "service" which you were unable to perform and have now incurred a debt i.e. a refund of the amount borrowed.
     

Share This Page

Loading...