Re Cyril Glen Wehr

[1982] FCA 323

JUDGMENT

LOCKHART J Case N o 125 of 1980

CYRIL GLEN WEAR

HIS HONOUR:  Thls 1 s an app l l ca t ion fo r d l scha rge f rom

bankruptcy by Cyrll Glen Wehr, who was made

bankrupt on 15 February 1980. I need not re la te

a l l t h e facts r e l e v a n t t o t h e a p p l l c a t l o n f o r

dlscharge; they have been set o u t f u l l y I n t h e

Off lc la l R e c e l v e r ‘ s r e p o r t o n t h l s a p p l l c a t l o n

and In the ev ldence g lven today by the bankrupt

and h is daughter , Mrs DeWlt.

P la ln ly , t he bankrup tcy was brought about

pr lmarl ly because, soon	after	a	most unfortunate
event occurred In August 1978	when	the	son-ln-law

of the bankrupt was k l l l e d as a r e s u l t of an

accldent , and hls daughter was s e r l o u s l y l n j u r e d

f o r a s u b s t a n t i a l time, h e l e n t h l s name t o

commerclal documents, lncludlng leases, guarantees

and forms of a p p l i c a t i o n f o r r e g l s t r a t i o n of bus lness

names I n respect of bus inesses p rev ious ly ca r r i ed

on by h l s son-In-law and daughter. Thls he d l d f o r

t h e p u r p o s e r e a l l y of h e l p m g h l s d a u g h t e r I n t h e

d l f f l c u l t s l t u a t l o n c r e a t e d b y h e r l n d l s p o s l t l o n ,

b u t a s a temporary measure unt l l she should be able

t o h a n d l e h e r own b u s l n e s s a f f a l r s a g a l n .

I n t h e r e s u l t , t h e p e o p l e who a c t u a l l y r a n t h e

bus lness , no t be lng the bankrupt h lmsel f who appears

t he bus iness , g ros s ly mismanaged t h e b u s i n e s s a f f a i r s a n d

incur red subs tan t ia l debts . Thus , the bankrupt has

s u b s t a n t i a l l i a b i l i t i e s and v i r t u a l l y no assets.

There has been some d iscuss ion today as t o whether

t h e b a n k r u p t ' s i n t e r e s t i n a house a t Felixstow, which i s

r e g i s t e r e d i n t h e j o i n t names of himself and his wife , could

b e a v a i l a b l e t o c r e d i t o r s o f t h e estate, notwi ths tanding the

p rov i s ions of s e c t i o n 63 of the Defence Services Homes : A c t 1918.

I s h a l l s a y n o t h i n g a b o u t t h a t as it is p l a i n l y a matter t o be

d e t e r m i n e d , i f e v e r , i n a n o t h e r case when t h e r e h a s b e e n f u l l

argument upon it. I d o n o t t h i n k t h a t , i n t h e end, anything

t u r n s on t h a t p r o v i s i o n f o r t h e p u r p o s e s of t h i s a p p l i c a t i o n ,

e x c e p t t o s a y t h a t :  I understand it may have been the view

i n p r a c t i c e t h a t	a	bankrupt within the meaning	of	t h a t A c t
who	becomes	bankrupt , bu t before he	i s	discharged from
bankruptcy pays out	a	l	l	that remains under his loan from the

Defence Services H o m e s Corporat ion, does not necessar i ly have

t o b r i n g i n t o t h e estate of h i s b a n k r u p t c y h i s i n t e r e s t i n t h e

home. In o ther words , it may b e t h a t t h e e f f e c t of S. 33

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upon i ts strict c o n s t r u c t i o n is t o p r o t e c t t h e b a n k r u p t ' s

i n t e r e s t i n h i s home, n o t o n l y h i s i n t e r e s t a t t h e d a t e of

t h e commencement of h i s bankruptcy but whatever in te res t or

i n t e r e s t s h e may t h e r e a f t e r a c q u i r e i n r e l a t i o n t o t h e home

whils t he remains an undischarged bankrupt . I express no

further view upon	it,	e x c e p t t o s a y t h a t t h e q u e s t i o n	i s	p l a i n l y
an open one.

The bankrupt is 65 yea r s of age, he i s married and i s i n

employment. Nothing unfavourable i s repor t ed by. t h e O f f i c i a l

Receiver	and no	relevant offences have been commit ted	by	t h e
bankrupt.	N o matters are reported	under	sub-s.	of S . 150.

It i s t r u e t h a t ,	as no	object ion has been	lodge1	d ,	the bankrupt
w	i	l	l	,	in the ord inary course , be d ischarged f rom his bankruptcy
in Februa ry	1983,	bu t	I	t h i n k i n a l l the c i rcumstances	it 1s

r ight that he be discharged today from bankruptcy. Accordingly,

I make an order of d ischarge .

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