Bankruptcy and insolvency


The Micawber principles: When bankruptcy and Family Law Collide

1.    Introduction Why is this paper called “The Micawber principles”?  Mr Micawber, in Charles Dickens’ David Copperfield is the eternal optimist.  His famous phrase “Something will turn up” is probably reflective of why many people end up bankrupt.  Judge Driver, in a case referred to in this paper, described a bankrupt as...

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Bankruptcy, financial agreements and the rights of creditors

The Full Court of the Family Court of Australia in Grainger & Bloomfield[1]  considered the standing of a creditor to apply to set aside a financial agreement after the debtor spouse became a bankrupt. Shortly prior to the bankruptcy, the bankrupt spouse transferred her legal title in the home to her husband, which left...

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The rights of trustees in bankruptcy and s 75(2)(ha)

Trustees in bankruptcy are often pessimistic about how they will fare in proceedings under s 79 Family Law Act 1975 ("FLA"). The recent case of Grainger & Bloomfield[1] is likely to increase this pessimism. The impact of s 75(2) in the determination of claims under s 79 when one party is bankrupt may be less than indicated...

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When family law meets bankruptcy

Background Before 2005 trustees and non-bankrupt spouses were often engaged in races to commence or complete litigation in different courts. The Bankruptcy and Family Law Legislation Amendment Act 2005 ("the 2005 Act") applies to bankruptcies for which the date of bankruptcy was on or after 18 September 2005. The solution was...

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Stanford—implications for trustees in bankruptcy

The recent High Court decision of Stanford v Stanford (2012) FLC 93-518 has possible implications for trustees in bankruptcy involved in or contemplating property proceedings under s 79 Family Law Act (“the Act)”. The facts of the case and its general implications are set out in another article by the writer on CCH Law Chat at...

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