QLD Bankruptcy and Inheritance Issue - Help?

[Officially Panicking]

My bankruptcy is due to end in 2 weeks. My aunt died 6 months ago and I didn't think she had any assets. I didn't even attend the reading of the will.

I've just received a letter from the solicitors that I need to sign and provide bank details, so apparently I'm getting some money and I've just found out it's actually going to be around $30k (my bankruptcy was for $40k and I know that's not much, but I was suicidal at the time and bankruptcy was the better option).

I was planning to wait the 2 weeks until I was out of bankruptcy, but I just looked at the papers and the question is 'Are you now or have you ever been bankrupt' (I'm paraphrasing). Obviously I can't lie. But is it possible to get the question rephrased to say 'Are you currently an undischarged bankrupt'? To which (after I'm discharged) I could honestly say 'yes'.

If I did that, would it make a difference? Can the trustee still take the money? If so, do I have the right to decline the inheritance and give it to my sister?

I honestly don't know what to do. None of my family know I went bankrupt and if I don't get this money, I would honestly rather kill myself than try to explain to my parents why. Any help will be gratefully accepted.

 

[Rob Legat - SBPL]

The relevant date in terms of your bankruptcy is the date at which you became entitled to a benefit under the deceased estate - usually 30 days after the death of the person. That money legally belongs to your bankruptcy trustee for payment against your debts. Don't forget that when you go bankrupt, the people you owed money to don't get paid - they're out of pocket to the tune of $40,000.

If you change the question, someone is going to ask why. If you don't answer the question, someone is going to ask why. Unless it's a sworn document, you're under no obligation to tell the truth - but the document can be used against you in the future. Plus if your family are aware of your situation, it's a safe bet the executors are too.

If you fail to inform your bankruptcy trustee you are potentially committing offences under the Bankruptcy Act which carry prison terms of up to several years.

For example:
- Failing to disclose information or property to your bankruptcy trustee;
- Making a false or fraudulent representation about your affairs; and/or
- Concealing or dealing with property worth more than $20.00.

Your bankruptcy can also be extended for up to another 8 years if your trustee objects to your release (such as on the basis you failed to comply with your obligations).

 

[Officially Panicking]

My family doesn't know. No one knows.

I honestly feel like death is my best way out, here.

 

[Phanelope]

I'm so sorry. That sounds like an awful situation. I'm not sure if what the previous poster said means that inheritance belongs to the trustee and therefore you are not able to decline it. If you could decline it I would assume it would go back to the estate and be distributed among the remaining beneficiaries. Maybe ignoring the inheritance is an option? I know claims on super death benefits have to be made within 90 days but not sure what happens with inheritance.

Why are you so scared of your family? They would rather a child with debt than a child who's not alive. Trust me.

Anyway, I'm not a lawyer, I just wanted to let you know I feel for you in this tough situation.

 

[Officially Panicking]

Thanks Phanelope. About 5 years ago, I had something really awful happen. I should have gone to the police, but didn't. End result is, I ended up having a complete breakdown, had to abandon my career and was no longer able to meet my commitments, hence bankruptcy.

About 18 months ago, I had another breakdown and had to move back in with my parents. They've been through so much and they don't even know why. And I'm just tired. I was finally starting to get it together and then this happened. I thought my luck was finally changing and to actually feel hope for once then lose it again. I've had enough. I don't want to play any more.

 

[Phanelope]

Did this just happen today? Maybe sleep on it? There are a number of online and over the phone counselling services available that may be able to give you strategies to relax and clear your head. Its hard for us to think straight when we are panicking.

If something really awful happened to you, I'm sure your family will understand.