Bankruptcy can have significant effects upon family law proceedings and it is not uncommon for the Federal Circuit and Family Court of Australia to deal with property matters involving a bankrupt estate. Bankruptcy Bankruptcy is the process whereby a person cannot pay their debts when such payments fall due. In Family Law proceedings, when a party becomes bankrupt, control of their property and income transfers to the trustee of the estate. However, some property, such as superannuation, household goods, motor...
