Harrison (Trustee), in the matter of Olechnowicz (Bankrupt) v Olechnowicz

[2023] FedCFamC2G 1233

FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA

(DIVISION 2)

Harrison (Trustee), in the matter of Olechnowicz (Bankrupt) v Olechnowicz [2023] FedCFamC2G 1233   

File number(s):	SYG 1598 of 2023
Judgment of:	JUDGE STREET
Date of judgment:	15 December 2023
Catchwords:	BANKRUPTCY – surplus funds – dividend distribution
Legislation:	Bankruptcy Act 1966 (Cth)
Cases cited:	Clout (Trustee) in the matter of Warren (Bankrupt) v Warren [2023] FCA 755
Division:	Division 2 General Federal Law
Date of hearing:	15 December 2023
Place:	Sydney
Number of paragraphs:	3
Date of hearing:	15 December 2023
Place:	Sydney
Solicitor for the Applicant:	Mr C Brown of SLF Lawyers
Solicitor for the Respondent:	No Appearance

ORDERS

SYG 1598 of 2023

FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 2)

IN THE MATTER OF ALEXANDRA OLECHNOWICZ, BANKRUPT

BETWEEN:

BRETT RICHARD GEOFFREY HARRISON (AS TRUSTEE FOR THE BANKRUPT ESTATE OF ALEXANDRA OLECHNOWICZ)

Applicant

AND:

ALEXANDRA OLECHNOWICZ

Respondent

ORDER MADE BY:	JUDGE STREET
DATE OF ORDER:	15 DECEMBER 2023

THE COURT ORDERS THAT:

1.Pursuant to section 146 of the Bankruptcy Act 1966 (Cth) (Bankruptcy Act), the distribution of dividends amongst creditors who have proved their debts in the bankrupt estate of Alexandra Olechnowicz shall proceed in accordance with Part IV, Division 5 of the Act as if the Respondent had filed a statement of her affairs and those creditors had been stated to be creditors in it.

2.The Respondent is not entitled to any surplus funds remaining after payment of the dividends to creditors until she has lodged a statement of her affairs in the required form with the office of the Official Receiver and the Applicant has dealt with the claims of any further creditors as may be disclosed therein.

3.Within 3 business days of the date of these Orders, the Applicant give notice of these Orders to the Respondent by:

a.sending a copy to the postal address of the Respondent that is last known to the Applicant as at that date;

b.sending a copy to each email address of the Respondent that is last known to the Applicant as at that date;

c.sending a text message to the Respondent to the mobile phone number of the Respondent that is last known to the Applicant as at that date in the following terms:

Dear Ms Olechnowicz,

We have obtained orders from the Court regarding the administration of your bankrupt estate. A copy of those Orders has been sent to your last known postal address and email address. Should you seek a further copy of the Orders, please request same by return message, including the address to which you wish them to be sent.

Regards,

Brett Harrison (as trustee of the bankrupt estate of Alexandra Olechnowicz).

4.The Applicant’s costs of and incidental to these proceedings be paid from the bankrupt estate of Alexandra Olechnowicz in accordance with the Bankruptcy Act.

Note: The form of the order is subject to the entry in the Court’s records.

Note: The Court may vary or set aside a judgment or order to remedy minor typographical or grammatical errors (r 17.05(2)(g) Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 17.05 Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2021 (Cth).

REASONS FOR JUDGMENT

JUDGE STREET

1. These proceedings were commenced on 9 October 2023 for declarations for the distribution of dividends under s 146 of the Bankruptcy Act 1966 (Cth), in circumstances where the bankrupt has failed to provide a statement of affairs. The principles to be applied in relation to the application of s 146 have been identified by Logan J in Clout (Trustee) in the matter of Warren (Bankrupt) v Warren [2023] FCA 755 (at [52]). The affidavit of the trustee has identified in his affidavit, being appointed on 2 February 2023 as the result of a sequestration order made by a Registrar of the Court. The trustee identifies as taking steps to realise the property of the bankrupt and the fate of the bankrupt by the statement of affairs and has identified appropriate reports to creditors and the taking of appropriate steps to notify creditors of the application being made to this Court in respect of this declaration and distribution.

2. The trustee identified the surplus that remains as a result of the realisation of the divisible property and has sought orders requiring the bankrupt to provide a statement of affairs before any balance is distributed back to the bankrupt. 

3. The proposed orders of the trustee are appropriate, and, accordingly, the Court makes the above orders.

I certify that the preceding three (3) numbered paragraphs are a true copy of the Ex Tempore Reasons for Judgment of Judge Street.

Associate:

Dated:       20 February 2024