Re Perry, E.P.G. [1985] FCA 80

Re Perry, E.P.G. [1985] FCA 80

The bankrupt failed to keep and preserve sufficient books of account and had incurred substantial liabilities, including to the petitioning creditor, without reasonable prospect of repayment. Her financial difficulties were not solely or primarily caused by her arrest, and her evidence did not establish prejudice in obtaining legal assistance. Although Bagot's objection based on a possible sale of her story did not justify refusing discharge, the proven s.150(6) grounds and the need to mark disapproval of reckless and irresponsible conduct required suspension of the discharge until 4 December 1985.

Jurisdiction
Australia
Judgment Date
07 March 1985
Procedural Posture
Bankruptcy Application for Discharge / Opposed Application for Discharge Under S.150 of the Bankruptcy Act 1966
Outcome
Application for discharge granted, but operation of discharge suspended until 4 December 1985; no order as to costs.
Legal Topics
['discharge From Bankruptcy' 'suspension of Discharge' 'conduct of Bankrupt' 'books of Account' 'contracting Debts Without Reasonable Prospect of Repayment' 'creditor Opposition to Discharge']
['bankruptcy'] ['discharge From Bankruptcy' 'suspension of Discharge' 'conduct of Bankrupt' 'books of Account' 'contracting Debts Without Reasonable Prospect of Repayment' 'creditor Opposition to Discharge']

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Procedural Posture

Bankruptcy Application for Discharge / Opposed Application for Discharge Under S.150 of the Bankruptcy Act 1966

Legal Issues

  1. 1 ['Whether the bankrupt should be granted an order of discharge under s.150 of the Bankruptcy Act 1966.' 'Whether the bankrupt omitted to keep and preserve sufficient books of account within s.150(6)(a).' 'Whether the bankrupt contracted debts without reasonable ground of expectation of being able to pay them within s.150(6)(c).' "Whether the creditor's contention that the bankrupt was likely within five years from bankruptcy to make a significant contribution to her estate justified refusing discharge." "Whether the bankrupt's asserted prejudice in funding extradition proceedings supported immediate discharge."]

Ratio Decidendi

The bankrupt failed to keep and preserve sufficient books of account and had incurred substantial liabilities, including to the petitioning creditor, without reasonable prospect of repayment. Her financial difficulties were not solely or primarily caused by her arrest, and her evidence did not establish prejudice in obtaining legal assistance. Although Bagot's objection based on a possible sale of her story did not justify refusing discharge, the proven s.150(6) grounds and the need to mark disapproval of reckless and irresponsible conduct required suspension of the discharge until 4 December 1985.

Court Disposition

Application for discharge granted, but operation of discharge suspended until 4 December 1985; no order as to costs.

Orders

  • ['The application for discharge of bankruptcy be granted but be suspended until the 4th December 1985.' 'There be no order as to costs.']