What if I receive money during my bankruptcy?

Apart from your ordinary income, other money and payments you receive may:

  • still form part of your income assessment[?] or
  • be an asset your trustee can claim and sell.

If you receive a payment and you're unsure if it fall into the above categories, check with your trustee. The below information shows some common payment types and how they are treated in bankruptcy.

For information about changes in income see: My income has changed.

If your trustee is the Official Trustee (AFSA) you can notify us of money received using the online form below.

Can I keep my tax refund?

If you receive a refund, you shouldn't spend it before confirming with your trustee whether you can keep it. For more information see: What happens to my money?

Can I keep my super?

This depends on how and when you receive it. Normally, your trustee can’t claim your super if you receive it after your bankruptcy begins. During bankruptcy, you must inform your trustee of any super you receive.

Some super organisations request evidence before they’ll release funds to you.  They may want to confirm that your trustee doesn't intend to claim your super. Contact your trustee to request this.

For more information see: What happens to my money?

I'm getting an inheritance, can I keep it?

Normally no. If you receive an inheritance, you need to inform your trustee.

For more information see: What happens to my money?

I'm receiving a redundancy payment, can I keep it?

Redundancy and leave payments you receive:

  • prior to entering bankruptcy are an asset the trustee can claim
  • after entering bankruptcy form part of your assessable income[?]. If your income goes over a set amount you need to make compulsory payments[?].

You need to inform your trustee if you receive these types of payments.

What about gifts and prizes?

If you receive money during your bankruptcy, you need to inform your trustee. This includes gifts from friends or family and prizes, such as winning a lottery. Your trustee can claim money you receive as an asset.

Notifying your trustee

If your trustee is the Official Trustee[?] (AFSA) update us now.

Advise of additional income/assets