"Income" for bankruptcy purposes

Discussion in 'Legal Issues' started by Millie, 26th Jul, 2018.

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  1. Millie

    Millie Well-Known Member

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    I have read definitions/explanations of income for bankrupts, but cannot find where "income" would include the value of a rental benefit from spouse to the bankrupt.

    ie. Bankrupt lives in house owned by spouse. (Lives with spouse.)

    Can someone please point me in the right direction.
     
    Millie, 26th Jul, 2018
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 26th Jul, 2018
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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Free lodging is not income. Income for a bankrupt can include tax refunds, gifts of money, lottery winning and prizes and a range of other matters as well as general concepts of earned income.

    If the bankrupt owed their spouse for rent prior and it was recognised as a debt it may be part of the estate in bankruptcy (ie debt amount).Rent after the bankruptcy commences would be a non-bankruptcy debt. The bankrupt cant use payments to spouse for rent as reason not to contribute to the trustee debt
     
    Paul@PAS, 31st Jul, 2018
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