Legal Question in Bankruptcy in Australia

My rights re: Ex-partner's bankruptcy

My ex-partner (we are still legally married, but have been separated for 5 years) declared bankruptcy and as such, I received a letter from the insolvency trustee explaining that they wanted half of the proceeds of the sale of a property we had a joint mortgage over. Since then I have been told that because the mortgage was in joint names, but the title deed is only in my name, I may not have to give them the 50% of profits they are asking for. What are my legal rights in this case?


Asked on 9/14/03, 7:50 pm

1 Answer from Attorneys
Tim Wishart McMahons National lawyers

Re: My rights re: Ex-partner's bankruptcy

I think you should explain to the trustee in bankruptcy that your ex-partner does not have any interest in the real property. That you are the sole owner (and always have been?). Be aware that you will be liable for the mortgage payments solely; I am assuming that the mortgage was joint and several (you have probably been servicing the debt anyway). If your former partner has not been contributing to the mortgage payments the argument is even stronger that the trustee of the bankrupt estate cannot claim any interest and certainly not 50%.

Read more
Answered on 9/14/03, 8:15 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Australia