Objections to a bankrupt’s 3 year discharge in Australia
Apart from Australian law imposing a long period for a person to be subject to the restrictions and stigma of bankruptcy, of 3 years, it…
Assigning bankruptcy claims to a former trustee
A 5 day bankruptcy hearing was cancelled in March 2021, in relation to matters occurring in 2012, being challenged in a 2014 bankruptcy by way…
Winding up Forum Finance
In ordering that liquidators be appointed to Forum Finance Pty Ltd on 9 July 2021, the Federal Court explained the nature of a winding up…
Insolvency practitioner charge-out rates – the cost of carrying the State
In making a winding up order against Forum Finance,[1] Justice Michael Lee made this comment about the hourly fees of the proposed liquidators: “24 … The…
Employees’ redundancy rights on the insolvency of their employer
There are now a number of decisions from the Administrative Appeals Tribunal reviewing decisions of the Fair Entitlements Guarantee where the question is whether an…
Cross-border insolvency protection of a ship on its way to Australia
An Italian shipping company – Michele Bottiglieri Armatore SpA – which is subject to Italian restructuring protection, a concordato preventivo – has successfully obtained a…
The insolvency rule in ex parte James – another in a series of cases ‘dancing on pinheads’
A trustee in bankruptcy in England rejected a £5.7m proof of debt lodged by the revenue authority [HMRC][1] on what was found to be a…
Australian small business insolvency law – a review
Several stars aligning at the end of 2020-2021 prompt this review of where Australia is at in the area of small business insolvency law. Small…
Regulatory penalties
Sanctions imposed by courts for breaches of competition or regulatory laws have to tread a line between being so severe as to put an otherwise…
Australian High Court – special leave sought in bankruptcy Ponzi case – 139ZQ
An application for special leave to appeal to the High Court[1] has been made in a bankruptcy matter involving a section 139ZQ notice demanding payment…
Trustee “entirely blameless” in his dealings with a mentally infirm bankrupt
While there is now greater training available in dealing with those suffering mental illness for professionals working in debt counselling and bankruptcy,[1] it remains the…
Why do we have preference recoveries in insolvency?
In finding that the 'peak indebtedness rule' did not in fact exist, the Full Federal Court[1] in Badenoch v Bryant has also questioned the central…
Electronic delivery of documents in insolvency law
Some belated concern has been raised about the potential for new corporate insolvency law allowing a winding up demand to be served on a company…
DOCAs – should ‘not much of a return to creditors but better than the liquidation alternative’ be enough?
The WA Supreme Court has dismissed a challenge to deeds of company arrangement (DOCAs) that offered ‘not much of a return to creditors’ but ‘better…
Insolvent trading convictions set aside on mental health grounds
Following convictions and imprisonment for insolvent trading arising from the 2009 collapse of Kleenmaid, its founder, Andrew Young, has succeeded on appeal but on one…
Licensing of insolvency practitioners – decision making principles from New Zealand [updated post 13 June 2021]
Mr Damien Grant, the New Zealand insolvency practitioner who successfully challenged RITANZ’s decision to deny him the right to practice as a liquidator, is now…
Why has the Australian government not yet decided on any further insolvency law changes for small business?
Australia MSE insolvency reform process seems to have halted, perhaps because of a poor reception to its January 2021 small company reforms, described as a…
Employees’ loss of FEG redundancy payments through their misguided “acts of decency and loyalty” to assist
The AAT has described its decision confirming a lack of government assistance under fair entitlements guarantee (FEG) for “two dedicated, loyal, hardworking, long-term employees of…