Pioneer Credit Acquisition Services Pty Ltd v Hayes

Pioneer Credit Acquisition Services Pty Ltd (the creditor) sought a sequestration order against Mr Hayes (the debtor) in the Federal Court of Australia. The creditor's petition was based on an alleged act of bankruptcy by the debtor.

The primary legal issue before the Court was whether the creditor had established, on the evidence presented, that the debtor had committed an act of bankruptcy as required by section 43 of the *Bankruptcy Act 1966* (Cth). The Court also considered the debtor's assertions, which were described as scandalous.

Egan J found that the creditor had satisfied the requirements of section 43 of the *Bankruptcy Act 1966*. His Honour determined that the claims made by the debtor lacked substance and did not present a genuine impediment to the making of the sequestration order. Consequently, the Court was satisfied that an act of bankruptcy had occurred.

A sequestration order was made.