NSW Share of Estate Paid to Trustee - What Happens to Remaining Amount?

[Roses1]

What happens if a Bankrupt's share of estate, which is paid to the trustee exceeds the amount payable to creditors and all trustee's fees, i.e., if cash benefit paid to the trustee is 200,000.00 and amount to creditors and trustee fees are 85,000.00. What would happen to the 115,000.00?

 

[James D. Ford - Solicitor]

Hi Roses1,

If the inheritance will payout your Bankruptcy, it can be annulled.

The end of bankruptcy — Australian Financial Security Authority

Annulment
Annulment is effectively the cancellation of a bankruptcy. There are three ways a bankruptcy may be annulled:

• you pay your debts in full, including interest, the realisations charge and your trustee’s expenses and fees. The realisations charge is a percentage of amounts received by a trustee from the sale of a bankrupt’s assets or repayment of debts that must be paid to the government.
• your creditors accept a composition or arrangement, which is an offer of something less than payment in full. See Compositions
• You successfully apply to the court for an order annulling your bankruptcy.

What happens after annulment?
Your name will appear on the National Personal Insolvency Index (NPII) forever, with the record showing that your bankruptcy was annulled and on a credit report available from a credit reporting agency for 2 years from the date of annulment, or 5 years from the date you became bankrupt, whichever is later. Other consequences of annulment are:

• assets not needed by your trustee to pay the trustee’s fees and expenses and your creditors will be returned to you
• creditors to whom you have granted security over an assets (eg a mortgages) will still have their rights in relation to those assets, which may include the power to seize and sell them if you default in repayments
• you are still liable for the payment of debts that are not provable in bankruptcy. See Your debts and creditors

Kind regards

 

[Roses1]

Hi Roses1,

If the inheritance will payout your Bankruptcy, it can be annulled.

The end of bankruptcy — Australian Financial Security Authority

Annulment
Annulment is effectively the cancellation of a bankruptcy. There are three ways a bankruptcy may be annulled:

• you pay your debts in full, including interest, the realisations charge and your trustee’s expenses and fees. The realisations charge is a percentage of amounts received by a trustee from the sale of a bankrupt’s assets or repayment of debts that must be paid to the government.
• your creditors accept a composition or arrangement, which is an offer of something less than payment in full. See Compositions
• You successfully apply to the court for an order annulling your bankruptcy.

What happens after annulment?
Your name will appear on the National Personal Insolvency Index (NPII) forever, with the record showing that your bankruptcy was annulled and on a credit report available from a credit reporting agency for 2 years from the date of annulment, or 5 years from the date you became bankrupt, whichever is later. Other consequences of annulment are:

• assets not needed by your trustee to pay the trustee’s fees and expenses and your creditors will be returned to you
• creditors to whom you have granted security over an assets (eg a mortgages) will still have their rights in relation to those assets, which may include the power to seize and sell them if you default in repayments
• you are still liable for the payment of debts that are not provable in bankruptcy. See Your debts and creditors

Kind regards

Thank you very much for your response. It has been very helpful.

Regards