BRIDGECORP LIMITED (IN RECEIVERSHIP) AND (IN LIQUIDATION) V NIELSEN HC AK CIV 2009-404-1060

BRIDGECORP LIMITED (IN RECEIVERSHIP) AND (IN LIQUIDATION) V NIELSEN HC AK CIV 2009-404-1060

There was jurisdiction to adjudicate. Bridgecorp was not required to disclose a security over property not owned by the debtor; alternatively any omission was cured by s418. Evidence supported that a debt in excess of $1,000 would remain after enforcement of security and possible insurance recovery. No discretionary basis under s37 existed to refuse adjudication; accordingly the debtor was adjudged bankrupt.

Citation
openlaw-e2b4c95e_b6ed_40ae_89a7_59d66da74adf.pdf
Parties
Judgment Creditor: Bridgecorp Limited (in receivership) and (in liquidation); Judgment Debtor: Roderick William Guthrie Nielsen; Supporting Creditor: G C O Nielsen
Court
High Court
Jurisdiction
New Zealand
Judgment Date
23 September 2009
Procedural Posture
Adjudication in Bankruptcy / Judgment Following Hearing
Outcome
Order adjudicating Roderick William Guthrie Nielsen bankrupt (timed at 10:00am 23 September 2009)
Legal Topics
Adjudication, Secured Creditor Disclosure, Mortgage Insurance, Valuation of Security, Discretionary Refusal Under S37
Insolvency Law Bankruptcy Property Law Contract Adjudication Secured Creditor Disclosure Mortgage Insurance Valuation of Security +1 more

Case Brief

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Parties

Bridgecorp Limited (in receivership) and (in liquidation)

Judgment Creditor

Roderick William Guthrie Nielsen

Judgment Debtor

G C O Nielsen

Supporting Creditor

Procedural Posture

Adjudication in Bankruptcy / Judgment Following Hearing

Legal Issues

  1. 1 Whether creditor must disclose security over property not owned by the debtor
  2. 2 Whether failure to disclose security renders proceeding a nullity
  3. 3 Whether creditor established an unsecured debt of at least $1,000 after accounting for security and insurance

Ratio Decidendi

There was jurisdiction to adjudicate. Bridgecorp was not required to disclose a security over property not owned by the debtor; alternatively any omission was cured by s418. Evidence supported that a debt in excess of $1,000 would remain after enforcement of security and possible insurance recovery. No discretionary basis under s37 existed to refuse adjudication; accordingly the debtor was adjudged bankrupt.

Court Disposition

Order adjudicating Roderick William Guthrie Nielsen bankrupt (timed at 10:00am 23 September 2009)

Orders

  • Order adjudicating R W G Nielsen bankrupt timed at 10am on 23 September 2009
  • Costs to Bridgecorp on a 2B basis together with reasonable disbursements to be fixed by the Registrar