Re Gaffney, J.P. Ex Parte Gaffney, J.P

JUDGMENT NO. 222.81 / .% .-.. .

IN THE FEDERAL COURT OF AUSTRALIA
GENERAL DIVISION
BANKRUPTCY DISTRICT

OF THE STATE OF OUEENSLAND

No OB 376 of 1990
RE: JOHN PATRICK GAFFNEY
EX PARTE: JOHN PATRICK GAFFNEY

Debtor

MINUTES OF ORDER

JUDGE MAKING ORDER: Cooper J
DATE OF ORDER: 24 April, 1992
WHERE MADE: Brisbane
THE COURT ORDERS THAT:

1. That John Patrick Gaffney be discharged from bankruptcy.

Note: Settlement and entry of orders is dealt with in Rule
124 of the Bankruptcy Rules.

IN THE FEDERAL COURT OF AUSTWIA
GENERAL DIVISION
BANKRUPTCY DISTRICT

OF THE STATE OF OUEENSLAND

No OB 376 of 1990
RE: JOHN PATRICK GAFFNEY
EX PARTE: JOHN PATRICK GAFFNEY

Debtor

C O W : Cooper J
DATE : 24 April, 1992
PLACE : Brisbane

EX TEMPORE REASONS FOR JUDGMENT

This is an application by John Patrick Gaffney for discharge from his bankruptcy. Mr Gaffney was made bankrupt on 2 April 1990 on his own petition.

The circumstances leading to his bankruptcy are set
out in his affidavit in support of the application. It

appears that Mr Gaffney became involved with a building

company and in that capacity provided personal guarantees. The building company failed and when the guarantees were

called up, it became apparent that the level of indebtedness of Mr Gaffney under the guarantees was such that he had no option but to seek his own bankruptcy.

Notice of this appearance has been given to his creditors. None of the creditors has indicated any opposition to the application which he brings. The Official Receiver has filed a report and there are no adverse matters raised in that report which would incline me to refuse the application. The application is not opposed by the Official Receiver.

Mr Gaffney has a background in the building and real estate area. He wishes to obtain a licence as a real estate agent in order to rebuild his personal circumstances and his status of bankrupt prevents him from doing so.

It seems to me on the material that there are cogent reasons why the court ought to exercise its discretion under section 150.

I order that John Patrick Gaffney be discharged from

bankruptcy.

I certify that this and the preceding page
is a true copy of the reasons for judgment herein of the Honourable . Justice Cooper.

Date: ay-kw W &mm 4 4 W&-.
Associate

CaseChat Overview and Summary

In the Federal Court of Australia, General Division, Cooper J heard an application from John Patrick Gaffney seeking his discharge from bankruptcy. Gaffney had become bankrupt on 2 April 1990 by his own petition, following financial difficulties stemming from personal guarantees provided to a failed building company. The matter was brought before the court without opposition from any creditors or the Official Receiver, who had filed a report without raising any adverse matters. Gaffney, who has a background in building and real estate, seeks to obtain a licence as a real estate agent to rebuild his personal circumstances, a goal impeded by his status as a bankrupt.

The legal issue before the court was whether there were sufficient grounds to exercise the discretionary power under section 150 of the Bankruptcy Act 1966 to discharge Gaffney from bankruptcy. The court considered the circumstances leading to Gaffney's bankruptcy, his efforts to resolve his financial difficulties, and his future plans to re-enter the real estate industry. The court also noted that there was no opposition to the application and that the Official Receiver did not raise any adverse matters in their report. The primary consideration for the court was whether there were cogent reasons to grant the discharge, particularly in light of Gaffney's intentions to rebuild his professional and personal life.

Cooper J found that the evidence presented provided cogent reasons to discharge Gaffney from bankruptcy. The court recognised Gaffney's background in the building and real estate sectors and his intention to re-enter the industry as a real estate agent. The absence of opposition from creditors and the Official Receiver, along with the lack of adverse matters in the report, further supported the granting of the discharge. Cooper J concluded that it was in the interests of justice to exercise the discretionary power under section 150 and ordered that John Patrick Gaffney be discharged from bankruptcy.

The court certified that the reasons for judgment accurately reflected the proceedings and decision made by Cooper J on 24 April 1992. The order granted Gaffney's application for discharge from bankruptcy, allowing him to pursue his professional goals without the impediment of his bankrupt status.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

JUDGE MAKING ORDER:	Cooper J
DATE OF ORDER:	24 April, 1992
WHERE MADE:	Brisbane
THE COURT ORDERS THAT:

Note:	Settlement and entry of orders is dealt with in Rule
124 of the Bankruptcy Rules.

company and in that capacity provided personal guarantees.	The building company failed and when the guarantees were
called up, it became apparent that the level of indebtedness of Mr Gaffney under the guarantees was such that he had no option but to seek his own bankruptcy.
Notice of this appearance has been given to his creditors. None of the creditors has indicated any opposition to the application which he brings. The Official Receiver has filed a report and there are no adverse matters raised in that report which would incline me to refuse the application. The application is not opposed by the Official Receiver.
Mr Gaffney has a background in the building and real estate area. He wishes to obtain a licence as a real estate agent in order to rebuild his personal circumstances and his status of bankrupt prevents him from doing so.
It seems to me on the material that there are cogent reasons why the court ought to exercise its discretion under section 150.