THE COMMISSIONER OF INLAND REVENUE v FAGAN [2017] NZHC 2214

THE COMMISSIONER OF INLAND REVENUE v FAGAN [2017] NZHC 2214

The Commissioner satisfied s13; Mr Fagan is presently unable to pay and his asserted sources of funds are speculative and not demonstrably imminent; his prior default and criminal history do not justify withholding adjudication; exercising the s37 discretion, the court adjudicated the debtor bankrupt.

Citation
[2017] NZHC 2214
Parties
Judgment Creditor: Commissioner of Inland Revenue; Judgment Debtor: John Grant Fagan
Court
High Court
Jurisdiction
New Zealand
Judgment Date
13 September 2017
Procedural Posture
Bankruptcy Adjudication Under Insolvency Act 2006 / Adjudication Hearing and Oral Judgment
Outcome
Order adjudicating John Grant Fagan bankrupt made
Legal Topics
Adjudication Order, Section 37 Discretion, Ability to Pay, Just and Equitable Discretion, Bankruptcy Notice, Debt Write Off, Default on Arrangement
Insolvency Bankruptcy Tax Law Student Loan Law Civil Procedure Adjudication Order Section 37 Discretion Ability to Pay +4 more

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Parties

Commissioner of Inland Revenue

Judgment Creditor

John Grant Fagan

Judgment Debtor

Procedural Posture

Bankruptcy Adjudication Under Insolvency Act 2006 / Adjudication Hearing and Oral Judgment

Legal Issues

  1. 1 Whether the creditor has established s13 requirements for adjudication
  2. 2 Whether the debtor is able to pay his debts such that adjudication should be refused under s37(b)
  3. 3 Whether it would be just and equitable to refuse adjudication under s37(c)

Ratio Decidendi

The Commissioner satisfied s13; Mr Fagan is presently unable to pay and his asserted sources of funds are speculative and not demonstrably imminent; his prior default and criminal history do not justify withholding adjudication; exercising the s37 discretion, the court adjudicated the debtor bankrupt.

Court Disposition

Order adjudicating John Grant Fagan bankrupt made

Orders

  • Order adjudicating John Grant Fagan bankrupt
  • Costs to Commissioner on scale 2B