31 Aug 2022
A voluntary undertaking to pay lump-sum instalments to a former spouse or children can amount to a provable debt capable of supporting a bankruptcy petition; however the debtor bears the burden of proving inability to pay and, having failed to do so, the petition must be dismissed.
20 Aug 2021
A statutory demand based solely on an unpaid lump sum under a matrimonial order that is not provable in bankruptcy cannot validly support a provable bankruptcy debt in circumstances where there is no other supporting creditor or other provable debt; the court will not in practice make a bankruptcy order on that basis, and the respondent must pay the applicant's costs.
26 Aug 2013
Arrears of periodic maintenance pending suit are not provable in bankruptcy because they are subject to the family court's discretionary variation and are incapable of reliable valuation; however such arrears may nonetheless constitute a petitionable debt for the purposes of presenting a creditor's petition as they are a pre-ascertained liquidated obligation, but the court will not normally make a bankruptcy order on a petition founded on a non-provable debt and will reserve making an order to wholly exceptional circumstances not present here; accordingly the petition was dismissed.
29 Jul 2013
Dismiss petition because alleged Mainland debt lacked any evidential foundation; maintenance arrears are not ordinarily a provable bankruptcy debt and creditor opposes the petition; debtor has not fully disclosed assets and family court found concealment of significant assets; and making a bankruptcy order would likely complicate and potentially obstruct the court-ordered transfer of the matrimonial home.
12 Nov 2001
The taxed costs awarded after the bankruptcy were not a debt provable in bankruptcy under section 34, and section 12 restricts only creditors owed provable debts; therefore section 12 did not require leave and the master's ruling that leave was required was set aside; appeal allowed with costs to the applicant.