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

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CATCHWORODS

BANKRUPTCY - application for discharge - trust formed shortly

before bankruptcy - purpose to keep assets from creditors - relevance on application for discharge.

Bankruptcy Act 1966, 5.150

RE: JOHN GERALD HALLAM EX_P.: THE BANKRUPT

E323 of 1984

PINCUS J. BRISBANE 24 January 1986

IN THE FEDERAL COURT OF AUSTRALIA

GENERAL DIVISION ) QLD E323 of 1984

BANKRUPTCY DISTRICT OF THE SOUTHERN ) DISTRICT OF THE STATE OF QUEENSLAND )

RE: JOHN GERALD HALLAM

EX PARTE: THE BANKRUPT

MINUTES OF ORDER

JUDGE MAKING ORDER: PINCUS J. DATE OF' ORDER: 24 January 1986 WHERE MADE: BRISBANE

THE COURT ORDERS THAT:

1. The application be dismissed.

NOTE: Settlement and entry of orders is dealt with of the Federal Court Rules.

in Order 36

IN THE FEDERAL COURT OF AUSTRALIA ) GENERAL DIVISION ) QLD E323 of 1984

BANKRUPTCY DISTRICT OF THE SOUTHERN ) DISTRICT OF THE STATE OF QUEENSLAND )

RE: JOHN GERALD HALLAM

EX PARTE: THE BANKRUPT

PINCUS J. 24 January 1986

REASONS FOR JUDGMENT

This 1s an application by Mr. J. G. Hallam, a bankrupt,

for an order of discharge under s.150 of the Bankruptcy Act 1966.

According to the evidence and report of the official receiver,

there will bea deficiency in the estate of a little over

$30,000. No dividend will be paid.

The applicant was in business from 1971 as a bathroom renovator, first alone, and subsequently in partnership with his wife. In 1981 the applicant suffered from a serious illness which rendered him unable to work for about six months, after which he was still significantly handicapped in his work. He also lost money, according to his evidence, because of the necessity to remedy work done by an unsatisfactory sub-contractor. His explanation for the financial difficulties

he encountered is credible and the official receiver reports that

his conduct, before and after bankruptcy, was satisfactory. The applicant has been bankrupt for nearly 20 months, his bankruptcy having taken place on 31 May 1984. In the circumstances, there would seem to be a reasonable case for an order of discharge, but for one aspect of the matter which requires consideration. This 1s that, at a time when his financial troubles had manifested themselves, he formed a trust, presumably in anticipation of