Jack and Inspector-General in Bankruptcy

The applicant sought the cancellation of an objection to his discharge from bankruptcy, which had the effect of extending his bankruptcy until 24 November 2025. The Inspector-General in Bankruptcy, as the respondent, had decided not to cancel the objection. The matter was heard by Deputy Boyle P.

The court was required to determine whether there was sufficient evidence to support the special ground of objection relied upon by the trustee, specifically whether the applicant had failed to provide a reasonable excuse for conduct constituting that special ground. The relevant ground of objection was that a transfer was void against the trustee in bankruptcy because of section 121 of the *Bankruptcy Act 1966* (Cth).

Deputy Boyle P reasoned that the applicant's salary was paid into his wife's account, and the family home was owned by a company controlled by his wife. A portion of the applicant's income paid into his wife's account was used to repay the mortgage over this property. The court found that the applicant had failed to provide a reasonable excuse for this conduct. Consequently, the prohibition under section 149N(1A) of the *Bankruptcy Act 1966* applied, meaning the objection could not be cancelled under section 149N(1).

The decision of the delegate of the respondent, made on 31 May 2021, not to cancel the objection to the applicant's discharge from bankruptcy was affirmed.