LNDN and Inspector-General in Bankruptcy

This matter concerned an application for review of a decision by the Inspector-General in Bankruptcy to confirm an objection to the Applicant's discharge from bankruptcy. The Applicant's bankruptcy commenced on 29 November 2016, with discharge originally due on 29 November 2019. The trustee appointed to the Applicant's bankruptcy filed a Notice of Objection on 12 November 2019, citing grounds under sections 149D(1)(d), (da), (ma), and (ab) of the *Bankruptcy Act 1966* (Cth). These grounds related to the Applicant's failure to provide requested information, intentionally providing false or misleading information, failing to disclose beneficial interests in property, and transferring property that was void against the trustee under section 121 of the Act. The Inspector-General had previously confirmed all grounds of objection, extending the Applicant's bankruptcy until 29 November 2024.

The Tribunal was required to determine whether the Inspector-General's decision to confirm the objection should be affirmed or cancelled. Specifically, under section 149N(1A) of the *Bankruptcy Act*, the Tribunal had to consider if there was sufficient evidence to support at least one special ground of objection and, if so, whether the Applicant had established a reasonable excuse for the conduct or failure constituting that ground. The Applicant contended that he had cooperated with the trustee to the extent possible, that any inaccuracies were unintentional due to seeking professional advice, that there was confusion regarding requests, and that he was under considerable strain. The Inspector-General argued that the Applicant had not adequately addressed the grounds of objection and lacked proximate evidence of any reasonable excuse.

The Tribunal found that Ground 4 of the Objection, concerning a transfer of property void against the trustee under section 121 of the Act, was established without reasonable excuse. This ground related to the transfer of settlement monies from the sale of the B Property into the LNDN Discretionary Trust. The Tribunal concluded that this transfer was void against the trustee because the Applicant's main purpose in making the transfer was to prevent the property from becoming divisible among his creditors, and he was insolvent or about to become insolvent at the time of the transfer. As at least one special ground was established without reasonable excuse, the Tribunal determined that the objection could not be cancelled.

Consequently, the Tribunal affirmed the Inspector-General's decision to confirm the objection to the Applicant's discharge from bankruptcy. This decision meant that the Applicant's period of bankruptcy would continue until 29 November 2024, unless the objection was subsequently withdrawn or cancelled.