Service 38 of Bankruptcy Law and Practice has been released.

Updates to this Service are as follows:

Commentary

The following chapters have been reviewed and updated:

• Chapter 2: Bankruptcy Practice in the Federal Court of Australia

• Chapter 3: Bankruptcy Practice in the Magistrates’ Court of Australia

• Chapter 5B: Superannuation

• Chapter 5C: Taxation

• Chapter 10: Bankruptcy Notices

• Chapter 16: Committees of Inspection

• Chapter 40: Offences

• Chapter 42: Service

Legislation

• Bankruptcy Regulations Schedule 1 Form 1 has been reissued

• Bankruptcy (Registration Charges) Act 1997 has been removed

• Bankruptcy (Estate Charges) (Amount of Charge Payable) Determination 2010 has been superseded by Bankruptcy (Estate Charges) (Amount of Charge Payable) Determination 2011

• Transitional Provisions of the Evidence Act 1995 have been removed

• Bankruptcy (Fees and Remuneration) Determination 2010 (No 2) is amended by Bankruptcy (Fees and Remuneration) Determination 2010 (No 2) Amendment Determination 2011 (No 1)

Forms

The following forms have been updated:

• Form 6 reissued

• Form 8 reissued

• Form 14 issued

• Form 18 reissued

Clinton Hart of Spearwood, Western Australia was sentenced in the Perth Magistrates Court on 9 December 2010 on eight counts of fraud under the Western Australian Criminal Code and one count of obtaining money for goods without disclosing his bankruptcy under the Bankruptcy Act 1966.

Hart became bankrupt in 2003 by debtor’s petition. The bankruptcy was extended by the trustee, and Hart is not eligible for discharge until May 2011.  

Hart was previously convicted and sentenced in 2006 on thirteen Bankruptcy Act charges relating to dishonesty and non-disclosure of information. He was sentenced to 6 months’ imprisonment on each charge, but was released on payment of a substantial surety, agreeing to be of good behaviour and to make reparation to his creditors.

On 9 December, Hart was sentenced to twelve months’ imprisonment on each of the eight State fraud charges and one months’ imprisonment, served concurrently, for the bankruptcy offence. The 2006 recognizance release was also revoked.

In sentencing, Magistrate Baylyl noted that the courts had endeavoured to deal with Hart in a non-custodial way, but his subsequent offending and persistent disregard left them with no option other than a custodial sentence. A monetary penalty would have been grossly inadequate.

The Insolvency and Trustee Service Australia has released the provisional personal insolvency statistics for the quarter ending September 2010.

They show that total personal insolvency activity (ie bankruptcies, part IX debt agreements, and Part X arrangements) decreased by 11.85% on the same quarter in 2009. They also show a small increase since the end of the June 2010 quarter in debt agreements and personal insolvency agreements.

This report, and other reports and statistics, can be accessed from the ITSA site.

For commentary regarding bankruptcy and personal insolvency, subscribers are referred to Bankruptcy Law and Practice.