In the Matter of the Bankrupt Estate of John Lawrence Sharpe Re Sharpe, John Lawrence; Ex Parte Donnelly, Max Christopher [1998] FCA 6

In the Matter of the Bankrupt Estate of John Lawrence Sharpe Re Sharpe, John Lawrence; Ex Parte Donnelly, Max Christopher [1998] FCA 6

Fees outstanding at the date of bankruptcy and subject to memoranda of fees issued by the bankrupt barrister are not property available for payment of debts under Part VI Division 3 of the Bankruptcy Act; they constitute income under Part VI Division 4B and are to be included in income contribution calculations.

Jurisdiction
Australia
Judgment Date
16 January 1998
Procedural Posture
Application for Directions in Bankruptcy / Post Bankruptcy, Application for Directions Regarding Characterisation of Unpaid Fees
Outcome
Questions answered; directions given to trustee; costs orders made.
Legal Topics
['after Acquired Property' 'income Contribution Assessments' "barristers' Fees" 'property Divisible Among Creditors']
['bankruptcy' 'legal Profession'] ['after Acquired Property' 'income Contribution Assessments' "barristers' Fees" 'property Divisible Among Creditors']

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Procedural Posture

Application for Directions in Bankruptcy / Post Bankruptcy, Application for Directions Regarding Characterisation of Unpaid Fees

Legal Issues

  1. 1 ["Whether unpaid barrister's fees at date of bankruptcy are property divisible among creditors or income under Division 4B of the Bankruptcy Act" 'If the fees are property, whether they are income in the hands of the trustee under the Income Tax Assessment Act' 'How trustee should treat fees rendered pre-bankruptcy but before/after 1 July 1994']

Ratio Decidendi

Fees outstanding at the date of bankruptcy and subject to memoranda of fees issued by the bankrupt barrister are not property available for payment of debts under Part VI Division 3 of the Bankruptcy Act; they constitute income under Part VI Division 4B and are to be included in income contribution calculations.

Court Disposition

Questions answered; directions given to trustee; costs orders made.

Orders

  • ['Fees outstanding at bankruptcy and subject to memoranda are not property divisible among creditors but are income for Part VI Division 4B.' 'Unnecessary to answer income tax question as fees are not property divisible among creditors.' 'Trustee should treat pre-bankruptcy memoranda of fees, rendered before or...