Debrossard & Official Trustee in Bankruptcy

This matter concerned an application by Ms Y Debrossard and the Official Trustee in Bankruptcy, representing the bankrupt estate of Mr I Debrossard, before Johnston J. The dispute revolved around the sale of a property and the distribution of its proceeds.

The court was required to determine the terms upon which the property would be sold, the responsibilities of the parties pending the sale, and the method of distributing the net proceeds. Specifically, the court needed to establish who would act as trustee for the sale, how the sale would be conducted, and how the funds generated would be allocated between Ms Debrossard and the bankrupt estate.

Johnston J ordered the appointment of trustees from the Insolvency Trustee Service Australia to sell the property. The property was to vest in these trustees, subject to existing encumbrances. Ms Debrossard was ordered to provide vacant possession, cover all outgoings and mortgage repayments until completion, and maintain the property. The trustees were empowered to sell the property by public auction or private treaty, with specific provisions for setting a reserve price. The proceeds of sale were to be applied first to cover sale expenses, mortgage repayments, legal costs, taxes, and property upkeep. Thereafter, 60 percent of the remaining proceeds were to be paid to Ms Debrossard, and 40 percent to the Official Trustee for the bankrupt estate of Mr I Debrossard. The court also made orders regarding the execution of necessary documents and granted leave to relist the proceedings if required.