How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask kmslaw Your Own Question
kmslaw, Solicitor
Category: Australia Law
Satisfied Customers: 209
Experience:  I have 15 years legal experience behind me and I graduated from the University of Sydney with First Class Honours in Arts/Law.
Type Your Australia Law Question Here...
kmslaw is online now
A new question is answered every 9 seconds

I am thinking of becoming bankrupt and wonder what will

Customer Question

Hi, I am thinking of becoming bankrupt and wonder what will happen if I inherit in this time. the 3yrs
JA: Since estate law varies from place to place, can you tell me what state this is in?
Customer: nsw
JA: Has anything been filed or reported?
Customer: yes the tax dept has filed and served me papers, my accountant wants to know what I want to do
JA: Anything else you want the lawyer to know before I connect you?
Customer: I earn more than the threashold income and want to know do I need to pay anything from my income if I am declared bankrupt.
Submitted: 10 months ago.
Category: Australia Law
Expert:  kmslaw replied 10 months ago.

Hello my name is***** am a solicitor in NSW who will help with your inquiry today. Unfortunately I have meetings until 1.00pm today so I could help you at 1.45pm Sydney time, does that help? If not, please let customer service know.

Expert:  kmslaw replied 10 months ago.

Hello sorry I am late with helping you. I am looking at your question now. I shouldn't be more than 15 more minutes. Thanks for your patience.

Expert:  kmslaw replied 10 months ago.

Hello there again

If you become bankrupt, you will not necessarily be released from all debts. So what happens is that a trustee is appointed, and some debts are absolved (like credit cards, mostly unsecured debt) and others are not (like child support). Here is some information about that under the heading "You may not be released from all Debts". If you have any further queries about what debts may remain, you should contact the Australian Financial Security Authority on their contact numbers. They should be able to answer specific questions about specific debts.

So, in answer to your question, if you inherit during the 3 years, that money would need to be sent to the trustee for distribution among the creditors that remain outstanding. Accordingly it is best that you make some arrangement to pay out those creditors during the three years if you can, so you can get out of bankruptcy possibly earlier than the 3 years with an annulment of your bankruptcy and then receive any inheritances to which you become entitled.

Best of luck with it. Please rate my answer well if you find it satisfactory. Kylie