26 May 2017
THE OFFICIAL ASSIGNEE in the bankruptcy of X v Y [2017] NZHC 1117
- Citation
- [2017] NZHC 1117
- Court
- High Court
The Court held the s21A settlement had the effect of defeating creditors because it deprived creditors of assets (notably X's interest in the family home) they would otherwise have had recourse to; confidentiality was not adequate financial consideration; the illegal contract argument was declined as unpleaded; relief under s47(2) is limited to voiding the agreement only to the extent necessary to remedy creditor prejudice and the Court ordered the agreement void to the extent of NZD 83,040.48 with payment within four weeks or sale of the home to satisfy that sum.