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October 2015 ยป Getting To Grips With Bankruptcy In Family Law Matters

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Getting To Grips With Bankruptcy In Family Law Matters

Family Law and Bankruptcy are two elements of law that are frequently brought together in overlapping matters. Very often, this forms a complex and overwhelming amount of legislation. Whether you are experiencing financial difficulties at home or are separating from a partner, a solid understanding of the Bankruptcy Act and Family Law Act will make the process much easier for all parties.

What They Do

The Bankruptcy Act and Family Law Act operate alongside each other. Where an application for property orders has been made in either the Family Court or Federal Circuit Court, the court has jurisdiction to deal with the bankruptcy of a party within a marriage or de facto relationship.

There are, however, some exceptions to this rule and they will impact on parties differently. One such instance is where a family law agreement or informal property settlement is reached by solicitors that results in the transfer of assets to your former partner but the terms of the agreement disadvantage your creditors. Here the trustee can conduct investigations and ultimately seek to have the agreement altered or reversed so that the property can become part of your bankrupt estate.

The Role of The Trustee

Generally, a trustee is bound by property orders made in the Family Court. However they can apply to have those orders set aside where it appears they were based on a miscarriage of justice by, for example, reason of fraud or duress (such as where the orders were used as a means to defeat the interests of creditors). The trustee will ask questions about the order and you may have to provide certain documents that bankrupts are obliged to produce upon request. Additionally the Trustee can be joined as a party to the family law proceedings and can seek orders for the benefit of the creditors.

This is intended to be general information and not specific legal advice. If you require specific legal advice tailored to your circumstances please telephone Perry Legal on 02 4940 4602.

Posted: 2/10/2015 12:39:38 PM by Kristen Perry | with 0 comments

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