VIC Bankruptcy - Ex Paying Out Unsecured Debt?

[Kiwigirl]

Posted this before, but hoping someone can understand the motivation to pay out an unsecured debt during bankruptcy?

- Ex sells house and secured home loan is paid out

- After home loan is paid out, there's an unsecured debt of $40,000 remaining and repayments left unpaid

- The next day he declares Bankruptcy

- 6 months after Bankruptcy, he pays out the unsecured debt himself in a lump sum?

I.e. what is he trying to do? I know it's not right but can't work out why

 

[Dan Drayton]

Odd that he had $40,000 to pay the unsecured debt himself? I wonder if his Trustee knew about it? Usually the obligation to pay pre bankruptcy debt which is unsecured falls to the Trustee in declaring a divided if sufficient realisations are made. Does he have a particular relationship with the unsecured debt holder? Maybe there is a deal going on behind the scenes. Too many scenarios come to mind without knowing more about the debt unfortunately.

 

[Kiwigirl]

Odd that he had $40,000 to pay the unsecured debt himself? I wonder if his Trustee knew about it? Usually the obligation to pay pre bankruptcy debt which is unsecured falls to the Trustee in declaring a divided if sufficient realisations are made. Does he have a particular relationship with the unsecured debt holder? Maybe there is a deal going on behind the scenes. Too many scenarios come to mind without knowing more about the debt unfortunately.

The debt was a home loan between him and his former wife. Their court order said to sell the house and pay out any outstanding debts associated with the secured home. He did this at settlement, the next day he was officially Bankrupt.

After loan payout there was that outstanding debt which was unsecured.

On his bank statements, it shows 6 months later (which was then during Bankruptcy), it shows a credit was made for balance and Account was then closed..

Not sure what's happened