Advice to trustee of bankrupt/insolvent estate
Administer the bankrupt estate correctly and recover what you can for creditors.
The administration of a bankrupt estate involves a substantial body of technical obligations, from asset identification and realisation through to creditor distributions, income contribution assessments, and investigation of pre-bankruptcy transactions. Each carries legal risk if not properly managed. We provide legal support to trustees throughout the administration process: advising on obligations, managing contested proceedings, and ensuring the estate is administered in a way that is defensible to creditors, the bankrupt, and the regulator.
What are the duties of a trustee in bankruptcy and why does specialist legal support matter?
A trustee in bankruptcy is appointed under the Bankruptcy Act 1966 (Cth) to administer a bankrupt estate: collecting the bankrupt’s divisible property, investigating their affairs, realising assets, and distributing proceeds to creditors. The role involves complex statutory obligations, including duties to investigate pre-bankruptcy transfers, assess income contribution obligations, deal with creditor claims, and report to the Australian Financial Security Authority. Legal advice ensures that the trustee’s decisions are properly grounded in the Act and the associated rules, and that contentious matters including voidable transaction recovery and income assessments are handled correctly.
What property can a trustee in bankruptcy realise?
A trustee can realise all of the bankrupt’s property that is not specifically exempt under the Bankruptcy Act 1966 (Cth). Exempt property includes household property up to a set threshold, superannuation, tools of trade up to a value limit, and a vehicle up to a prescribed value. Property held on trust for others is not available to creditors. The trustee may also recover property transferred or disposed of by the bankrupt before bankruptcy under the voidable transaction provisions of the Act.
What is the income contribution obligation?
During the bankruptcy period, a bankrupt whose income exceeds a threshold set under the Bankruptcy Act 1966 (Cth) must make contributions to the trustee. The threshold varies depending on the bankrupt’s family situation. If the bankrupt fails to pay, the trustee can pursue the debt. If the bankrupt disputes the assessment, the matter can be reviewed and, if unresolved, referred to a court for determination.
Can a trustee object to the bankrupt's discharge?
What voidable transactions can a trustee recover?
Under the Bankruptcy Act 1966 (Cth), a trustee can recover property transferred by the bankrupt before bankruptcy on grounds including transfers to defeat creditors, void dispositions made after bankruptcy commenced, transfers at undervalue within prescribed periods, and payments constituting preferences to certain creditors. Each type of claim has specific time limits and requirements. Legal advice is essential to identify which claims are viable and to conduct the recovery proceedings correctly.
Obligations clearly discharged.
Asset recovery pursued properly.
Creditor interests protected.
Get the legal support your administration needs early.
A trustee's decisions are scrutinised, legal support is not optional.
- We will advise on your statutory obligations under the associated regulations.
- We will investigate pre-bankruptcy transactions and advise on voidable transaction recovery.
- We will manage income contribution assessments and respond to any challenges from the bankrupt.
- We will handle creditor claims, proofs of debt, and creditor objections to discharge.
- We will liaise with ASIC and the Australian Financial Security Authority on reporting and regulatory matters.
You have accepted the appointment — and the estate is more complex than expected.
What's included in your trustee in bankruptcy legal support service
- Statutory obligations and compliance advice.
- Pre-bankruptcy transaction investigation and recovery.
- Income contribution assessment and dispute management.
- Creditor claims, proof of debt, and discharge objection advice.
- AFSA and ASIC reporting liaison.
The cost of getting it wrong.
Here is how we support your administration from acceptance to discharge.
From appointment through to discharge.
Establish the legal framework.
We brief you on your key obligations under the Act, review the bankrupt's statement of affairs, and identify the legal issues requiring early attention: pre-bankruptcy transactions, income assessment questions, and creditor claims.
Investigate and recover.
We investigate the matters identified, advise on claims worth pursuing, and manage any proceedings needed to recover property for the estate.
Distribute and close.
We advise on creditor priority and the distribution process, assist with income contribution assessment and any objections, and ensure the administration is properly finalised before the bankrupt is discharged.
Experienced insolvency lawyers with a deep understanding of bankruptcy obligations.
We understand you want to know the cost, before we get started.
We will map out our process, from beginning to end, so you know what the journey will look like before you get started.
We will provide you with a clear and detailed Work Proposal covering each step along the way.
Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.
Our great lawyer guarantee
We want to be part of your team over the long term. We achieve this by adhering to these core principles:
Take the time
We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.
Share our knowledge
We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.
Stick to our knitting
We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.
Work as one team
Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.
Fair pricing
For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.
It's your show
We're not in this for our egos. We're in it for a front row seat to witness your success.
