Re Meek, N.J. v Ex parte Meek, L.C

[1987] FCA 490

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, JUDGMENT No. +?o[ ........ ....-...	i :
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I N THE FEDERAL COURT NOT INTENDED FOR GENERAL

OF WESTERN AUSTRALIA D I S T R I B U T I O N

G E N E R A L D I V I S I O N 1

BANKRUPTCY D I S T R I C T )

S T A T E T H E O F OF 1

WESTERN AUSTRALIA ) NO. 5 2 4 of 1985 and

517 of 1985

R E : N I G E L J O H N MEEK and

LCAH CATHERINE MEEK

B a n k r u p t s

EX PARTE: LEAH CATHERINE MEEK

A p p l i c a n t

MINUTE OF ORDER

JUDGE MAKING ORDER: FRENCH J.

DATE O F ORDER: 1 S e p t e m b e r 1987

WHERE MADE: P e r t h

THE COURT ORDERS THAT:

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1. The b a n k r u p t is d ischarged w i t h e f f ec t from

1 September 1987 .

NOTE:	Se t t lement and e n t r y of	orders is dea l t w i t h	!
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IN THE FEDERAL COURT	)	MOT INTENDED	FOR	GENERAL
OF WESTERN AUSTRALIA	)	DISTRIBUTION
GENERAL DIVISION	)
BANKRUPTCY DISTRICT	)
OF THE STATE OF	)

WESTERN AUSTRALIA 1 NO. 524 of 1985 and

517 of 1985

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RE: NIGEL JOHN MEEK and

LEAH CATHERINE MEEK

Bankrupts

EX PARTE: LEAH CATHERINE MEEK

Applicant

CORAM:	FRENCH J.
1 September 1987

REASONS FOR JUDGMENT	i - t :
I.

Leah Catherlne Meek became a bankrupt on presentation of

her own petition on 1 2 November 1985. Her husband, Nlgel John

Meek, became a bankrupt two days later in the same way.

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On 23 October 1986 an order was made by Toohey J. under

s.53 of the Bankruptcy Act 1966 consolidating proceedings in the two bankruptcles and flxlng 12 November 1985 as the date of

commencement of bankruptcy for the ~ o i n t and separate estates.

Mrs Meek and her husband separated in August 1985. She

was left wlth thelr two school-aged children to maintaln.	She is	I .
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now divorced from Mr Meek and lives on a supporting parent's

benefit supplemented by earnlngs from part-time work.

She maintalns one of the two children, but the other is ..

no longer dependent upon her. :

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The h l s t o r y b e h i n d t h e b a n k r u p t c y 1s s e t o u t i n t h e

O f f i c i a l T r u s t e e ' s r e p o r t a n d d a t e s b a c k t o May 1982 when Mr & Mrs

Meek s t a r t e d t o t r a d e i n p a r t n e r s h i p as p l u m b l n g c o n t r a c t o r s .

T h e y b e g a n t h e i r b u s i n e s s w i t h no c a p i t a l . On L0 May

1 9 8 4 t h e y b o r r o w e d $ 1 1 , 4 0 1 . 0 0 f r o m A v c o F l n a n c l a l S e r v i c e s t o

c o n s o l i d a t e	o u t s t a n d i n g	d e b t s	a n d	a	d e b t	p r e v i o u s l y	owed	t o	t h a t
f i r m .

T h e l o a n w a s t o be r e p a l d b y m o n t h l y i n s t a l m e n t s o f

$ 3 5 4 . 0 0 o v e r a 5 y e a r term. I t was s e c u r e d i n p a r t by a c h a r g e

o v e r Mr and Mrs Meek's house a t 7 F u r n e s s Way, Koondoola which

t h e y h a d p u r c h a s e d i n 1 9 7 6 u n d e r a c o n t r a c t of s a l e w i t h t h e S t a t e

Housing Commlsslon (now Homeswest) w i t h m o n t h l y i n s t a l m e n t s of

$131 .OO.

On 3 1 O c t o b e r 1 9 8 4 t h e Meeks e n t e r e d a lease ag reemen t

w i t h E s a n d a L t d i n r e s p e c t o f a N i s s a n P a t r o l v e h i c l e f o r a term

o f 5 yea r s and mon th ly r epaymen t s o f $302 .09 .

T h e i r b u s i n e s s c e a s e d t o o p e r a t e I n May 1 9 8 5 f o r l a c k of

w o r k . They were t h e n g e n e r a t l n g a n a v e r a g e w e e k l y t u r n o v e r o f

$ 4 0 0 . 0 0	which was	i n s u f f l c l c n t	t o meet	t h e costs	of	t h e	b u s i n e s s	I	.
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a n d t h e i r l i v l n g e x p e n s e s .

No p r o o f s of d e b t were l o d g e d a g a i n s t Mrs Meek's

s e p a r a t e e s t a t e . P r o o f s o f d e b t a g a l n s t t h e j o i n t e s t a t e of s h e

and her husband amounted t o $9,785.00.

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3.

From her separate estate some $783.70 was realised.

The ~olntly owned house property at Koondoola yielded a

surplus of $5,0G7.26.

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Sufficient funds are held in the ~ o i n t estate to pay

offlcial fees and the Officlal Trustee's fees. In the separate

estate of Mrs Meek, there 1s sufficient for payment of official

fees and part payment of the Officlal Trustee's fees.

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In the ~ o i n t estate there is enough for a divldend of

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33.8615 cents in the dollar.

In the opinion of the Official Trustee, Mrs Meek's

bankruptcy is attributable to excessive use of credit facilitles.

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There is no question of unsatisfactory conduct on her part, nor of any misconduct under sub-s.150(6) of the Bankruptcy - Act. Creditors have been notified of the application, but none opposes it.

Mrs Meek attrlbutes her misfortune to her husband's

inadequacy in providlng for the famlly.

As expressed In her affidavit in support of the

appllcation, she seeks discharge to facilitate the chance of a new

life for the benefit of herself and her chlldren.

4 .

It does not appear that her bankruptcy 1s interfering

with her abillty to obtaln accommodation or to do part-tlme work.

Her reason for seeking discharge as explained to the Court on the hearlng of the application was, in essence, to rld herself of the

last legacy of her marital relatlonship with her former husband.

She has no intentlon of entering upon any commercial

activlty on her own account.

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An appllcatlon for discharge from bankruptcy is never

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treated llghtly by the Court. Consideration must be given not	I.
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only to the Interests of the applicant and hls or her creditors	I
but also to the interests of the public and commercial morality. -
Re: Maher (1985) 61 ALR 592, 598.

In the ordinary course Mrs Meek would be - discharged by

operation of law in November 1988.

The circumstances of her bankruptcy do not disclose any

question going to issues of public	interest or commercial
morality.

For myself, I can see no useful purpose to be served by

the prolongation of this bankruptcy and It may be that there will,

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at least, be some psychological beneflt to Mrs Meek, who, it is

apparent, is livlng In reduced circumstances.

5.

I n t h e even t I am prepared t o make the o rders sought .

I c e t t l f y t h a t t h i s a n d t h e p r e c e d i n g

f o u r ( 4 ) p a g e s are a t r u e and correct

copy of t h e Reasons €or J u d g m e n t h e r e i n

of h l s Honour Mr J u s t l c e F r e n c h .

I A s s o c i a t e : b.XLk

Mrs L.C. Meek appea red o n h e r own b e h a l f .

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Mr F . D . O 'Driscol l a p p e a r e d on b e h a l f o f t h e O f f l c i a l T r u s t e e .

Date of Hearing: 2 4 August 1987

Date of Judgment: 1 September 1987 !