Trustee Of The Bankrupt Estate Of Hicks and Hicks and Anor

The Trustee of the Bankrupt Estate of Hicks and Hicks (the trustee) sought to set aside consent orders made between the bankrupt husband and wife. The trustee's application concerned the distribution of assets and liabilities following the husband's bankruptcy.

The primary legal issue before the court was whether the consent orders made between the husband and wife should be set aside to allow for the proper distribution of the bankrupt husband's estate. This involved considering the impact of the bankruptcy on the property settlement and the trustee's ability to recover debts owed to the estate.

Loughnan J reasoned that the consent orders, which had been made prior to the trustee's involvement, did not adequately account for the husband's bankruptcy and the trustee's rights. The court applied principles relating to the administration of bankrupt estates and the Family Law Act 1975 (Cth), particularly s 79, to ensure that the trustee could recover debts proven in the bankruptcy. The court ordered that the previous consent orders be set aside and substituted them with new orders requiring the wife to pay specific amounts to the trustee, representing various debts of the husband and joint debts. These payments were to be made within three months, with provisions for the sale of the matrimonial home if the wife failed to comply.