Joyce (Trustee) v McInerney, in the matter of Oakes (Bankrupt)
[2025] FedCFamC2G 1597
•12 September 2025
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA
(DIVISION 2)
Joyce (Trustee) v McInerney, in the matter of Oakes (Bankrupt) [2025] FedCFamC2G 1597
File number(s): PEG 402 of 2025 Judgment of: JUDGE STREET Date of judgment: 12 September 2025 Catchwords: BANKRUPTCY - property jointly owned by the respondent and the bankrupt - proceeds of sale currently in the trustee's trust account as a result of realising the property of the bankrupt - the legal title is what the trustee was entitled to act upon Division: Division 2 General Federal Law Number of paragraphs: 4 Date of hearing: 12 September 2025 Place: Sydney Solicitor for the Applicant: Mr D Molony of Armeli & Molony Lawyers For the Respondent: The Respondent appeared via audio-link ORDERS
PEG 402 of 2025 FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 2)
IN THE MATTER OF BANKRUPT ESTATE OF RYAN DAVID OAKES
BETWEEN: MRS HELEN LOUISE JOYCE AS TRUSTEE OF BANKRUPT ESTATE OF RYAN DAVID OAKES
Applicant
AND: ALISHA MCINERNEY
Respondent
ORDER MADE BY:
JUDGE STREET
DATE OF ORDER:
12 SEPTEMBER 2025
THE COURT ORDERS THAT:
1.Pursuant to s. 90-15(1) of Schedule 2 of the Bankruptcy Act 1966 (Cth) (Act), or alternatively, s. 30(1)(b) of the Act, the funds presently held by Kenna Teasdale Lawyers of Level 2, 114 William Street, Melbourne Victoria in their trust account ($6,061.50) and controlled monies account ($121,325.71) relevant to the bankrupt estate of Ryan David Oakes be immediately released to the Applicant and the Applicant be authorised to distribute the funds by way of a dividend to unsecured creditors who have proved their debts in accordance with Schedule 2 of the Act, subject to the following conditions:
(a)the Applicant proceed with the annulment of the bankruptcy under s 153A of the Act; and
(b)the surplus that would otherwise be paid to the former bankrupt on annulment is to be paid to Ms Mcinerney.
2.Pursuant to ss 60-5 and 60-10 of Schedule 2 to the Act, the Applicant be paid her the bankrupt estate, such remuneration to be:
(a)in accordance with any resolution of creditors; or
(b)failing such resolution, as assessed or approved by the Court;
and such payment is to be made in priority to all other claims on the estate in accordance withs 109(1)(a) of the Act.
3.The payment referred to in Order 2 is to be made in priority to all other claims on the estate, in accordance with s 109(1)(a) of the Act.
4.The Applicant's costs of and incidental to this application be paid out of the bankrupt estate of Ryan David Oakes.
THE COURT NOTES THAT:
A.Putting the matter over for a further occasion would only further increase costs and diminish what may be payable to Ms M McInerney at the conclusion of the steps being taken by the Trustee in accordance with the Court’s orders.
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 24.04(g) Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2025 (Cth)), or to record a variation to the order pursuant to r 24.04 Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2025 (Cth).
EX TEMPORE REASONS FOR JUDGMENT
JUDGE STREET
These are proceedings that were commenced by the applicant trustee (“trustee”) on 1 September 2025, seeking orders in relation to the proceeds of sale currently in the trustee's trust account as a result of realising the property of the bankrupt. That property was jointly owned with the respondent, Ms Alisha McInerney.
Ms Alisha McInerney identified that the bankrupt had left the relationship in 2019, and that it was her who had made contributions in terms of paying the rates and looking after the property and that the property, in essence, had been upkept and the equity increased as a result of the contributions and input that she made.
The Court understands the proposition advanced by Ms McInerney, but it does not, however, give rise to any legal entitlement that would prevail over the legal entitlement of the creditors under the bankruptcy, given that the legal title of the bankrupt was properly dealt with by the trustee. The Court appreciates the hardship that has been imposed on Ms McInerney from a viewpoint of merits in circumstances where, effectively, she and her mother were the ones who had input in relation to the property. The sad reality, however, is that the legal title is what the trustee was entitled to act upon. The proceeds must be dealt with in accordance with the orders that have been identified in the application by the trustee.
Accordingly, it is for these reasons the Court makes the above orders.
I certify that the preceding four (4) numbered paragraphs are a true copy of the Ex Tempore Reasons for Judgment of Judge Street. Associate:
Dated: 9 October 2025
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