Hallam, Re J.G. Bankrupt, Ex Parte The [1986] FCA 10

Hallam, Re J.G. Bankrupt, Ex Parte The [1986] FCA 10

The applicant formed a trust shortly before bankruptcy, likely to put assets beyond the reach of creditors. This action, though not necessarily illegal or attacked under specific provisions, nevertheless reduced the prospects of creditors recovering against the estate and is a sufficient reason to refuse an order of discharge.

Parties
Applicant/bankrupt: John Gerald Hallam
Jurisdiction
Australia
Judgment Date
24 January 1986
Procedural Posture
Application for Discharge From Bankruptcy / Decision on Application
Outcome
application dismissed
Legal Topics
Discharge From Bankruptcy, Asset Protection Trusts, Effect of Pre Bankruptcy Dispositions
Bankruptcy Discharge From Bankruptcy Asset Protection Trusts Effect of Pre Bankruptcy Dispositions

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Parties

John Gerald Hallam

Applicant/bankrupt

Procedural Posture

Application for Discharge From Bankruptcy / Decision on Application

Legal Issues

  1. 1 Whether discharge from bankruptcy should be granted where a trust was formed shortly before bankruptcy to keep assets from creditors.

Ratio Decidendi

The applicant formed a trust shortly before bankruptcy, likely to put assets beyond the reach of creditors. This action, though not necessarily illegal or attacked under specific provisions, nevertheless reduced the prospects of creditors recovering against the estate and is a sufficient reason to refuse an order of discharge.

Court Disposition

application dismissed

Orders

  • The application be dismissed.