FAQs | What Happens When You Become Bankrupt?
Yes, you can gift money while bankrupt.
From our experience, gifting money during bankruptcy often occurs. Examples of why people may wish to gift monies during bankruptcy are:
- to support kids with their university studies,
- to support overseas family,
- to assist a family member who has guaranteed a loan.
Money should not be gifted if making the gift will leave you unable to live and pay your bills. An important element of bankruptcy is that it frees up your cash flow for you to be able to pay your bills and reduce the financial pressure you have been enduring.
If during your bankruptcy you will be required to pay income contributions, be sure that you are able to meet those obligations before gifting money. Only monies surplus to your requirements should be gifted.
Nicholls & Co have a complementary ‘help desk’ to answer your questions on bankruptcy. Call Nicholls & Co on 1300 060 122 or email firstname.lastname@example.org.