Pay creditors back after bankruptcy

Can I Pay Monies to a Creditor After I Become Bankrupt?

Can I Pay Monies to a Creditor After I Become Bankrupt?

Yes, you can pay monies to a creditor after you become bankrupt. Over the years, we have seen this happen where monies are owing to a family member and the bankrupt person wants to look after the family member, even though there is no legal obligation to pay the monies. We have also seen it happen where a family member had guaranteed a debt of the bankrupt person and the bankrupt person continues to make payments to the creditor to avoid the family members guarantee being called up.

We note that there is no legal requirement for you to pay money to a creditor that is caught by your bankruptcy.

Further Reading: We recommend our article: Types of debt covered by bankruptcy and What is bankruptcy? How does it work?

We are here to help. If you have any bankruptcy questions please give us a call on 1300 794 492 or email hello@understandingbankruptcy.com.au

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