Full disclosure

Contributed by Ian Macdonald and current to 1 September 2005

Debtors becoming bankrupt must set out fully all their assets, and all their debts. Some people wish to omit debts to friends or family. If these are proper legally enforceable arrangements they should be included. This is because it is a bankrupt’s duty to set out all details of their finances. Failure to do this can result in prosecution, or objections to discharge. It is also in the interests of the friend, because if the bankrupt estate gets any money in, the friend can get back a portion of the money owing along with other creditors.