If owed by bankrupt debtor

The claim process

If you are owed money by a person who is bankrupt, you can’t chase them directly to repay the debt. You should file a claim for what you are owed so you can share in any payment from the estate. 

Will I get regular updates?

The Official Assignee will send a report to all known creditors explaining the debtor’s financial position within 25 working days of the bankruptcy. It will set out what steps the Official Assignee will take to manage the bankruptcy and give an estimate of how long it will take to complete. 

After the first report is sent, you can log in to the Insolvency and Trustee website to see real-time updates on the progress of the bankruptcy. This will include how any assets are being dealt with and whether any money has been recovered.

Will I get my money back, and if so, when?

The amount of money you will recover depends on whether the debtor has any assets that can be sold or enough income to make regular repayments.  It will also depend on how much the debtor owes to other people, and whether any other creditors have a preferential claim, e.g. someone who is owed wages will get paid out ahead of other creditors.

Normally payments are made at the end of the bankruptcy, but occasionally an interim payment may be able to be made partway through the administration.

What if my claim is rejected?

The Official Assignee administers the bankruptcy. This includes checking and approving claims. 

You will need to file a claim and provide evidence for it. If you don’t, your claim may be rejected or accepted for a smaller amount.

If your claim is rejected, you can appeal the decision by making an application to the High Court within 15 working days. The Court might confirm the Official Assignee's decision, or they might change or reverse it.