Official Assignee v Strang

[2021] NZHC 516

IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY

I TE KŌTI MATUA O AOTEAROA TE WHANGANUI-A-TARA ROHE

CIV-2016-485-430

[2021] NZHC 516

UNDER

the Insolvency Act 2006

IN THE MATTER

of the bankruptcy of Graham John Strang

BETWEEN

THE OFFICIAL ASSIGNEE

Applicant

AND

GRAHAM JOHN STRANG

Respondent

Hearing:	15 March 2021
Appearances:	D Kerr for applicant Respondent in person
Judgment:	15 March 2021

JUDGMENT OF ASSOCIATE JUDGE JOHNSTON

[1]    Pursuant to leave granted by the Court in an order dated 23 October 2018 requiring the bankrupt, Mr Graham Strang, to make weekly payments of $293.93, the Official Assignee now seeks a variation of that order.

[2]    Very broadly the background is that Mr Strand made payments as directed in the original order for a time. He ceased doing so with the Official Assignee’s agreement as a result of disruption to his employment brought about by the Covid-19 pandemic. However, he subsequently resumed employment and then changed employers without informing the Official Assignee and without resuming any payments at all.

THE OFFICIAL ASSIGNEE v STRANG [2021] NZHC 516 [15 March 2021]

[3]    Accordingly, the Official Assignee seeks another order requiring Mr Strang to make payments, this time of $65 per week. This figure reflects a calculation based on the usual methodology which has been sanctioned by the Court in the past multiplied by 50 per cent to reflect the fact that Mr Strand’s current employment is not as certain as it once was.

[4]    In addition to that the Official Assignee seeks orders reconfirming an amount of arrears $17,635.80 and costs $7,725.30 which Mr Strand was ordered to pay back in October 2018, together with a further period of arrears and further costs associated with this application.

[5]    Mr Strang has not filed any formal opposition. The matter was set down to be heard at 10.00 am today in open court. Shortly before then, Mr Strang telephoned the Registrar to say that he did not feel well and that he was reluctant to come into court. Given the precautions around Covid-19 (even at level 1) it did not seem sensible to force the issue. I therefore permitted Mr Strang to appear by telephone link which he did.

[6]    Even although Mr Strang had not filed any formal opposition to this renewed application, the Official Assignee did not object to this being heard. In responding to the Official Assignee Mr Strang did not raise any opposition to the orders being sought. Rather he sought confirmation that if his circumstances changed he could talk to his case officer at the Official Assignee’s office and seek to make new arrangements.

[7]    Having heard from both Mr Kerr for the Official Assignee and Mr Strang, I make the orders sought by the Official Assignee in the following terms:

(a)the Bankrupt shall pay to the Official Assignee outstanding initial contributions arrears of $17,635.80 (“the initial arrears”), together with the outstanding initial costs awarded on 23 October 2018 of $7,725.30 (“the initial costs”);

(b)the Bankrupt shall pay to the Official Assignee $65 per week, or such other sum as the Official Assignee may from time to time require

pursuant to s 147 of the Insolvency Act 2006, from the date on which the Court makes such order, until he is discharged from bankruptcy;

(c)the Bankrupt shall pay to the Official Assignee an amount equal to the sum of $65 per week for the period from 28 July 2020 (being the date the Official Assignee required him to recommence contributions) until the date of the first payment ordered by the Court pursuant to (b) above (“the subsequent arrears”);

(d)the Bankrupt shall pay the Official Assignee’s costs on this application on a Category 2B basis, together with disbursements as fixed by the Registrar;

(e)on behalf of the Bankrupt, Kapiti Removals and Storage Ltd shall pay to the Official Assignee the sum of $65 per week, or such other sum as the Official Assignee may from time to time require, as a first charge on any monies that are due or become due or payable to the Bankrupt by Kapiti Removals and Storage Ltd, from the date of the first payment ordered by the Court until such times as:

(i)the Bankrupt has been discharged from bankruptcy; and

(ii)the initial arrears and the subsequent arrears and the initial costs and the costs awarded pursuant to (d) above have been paid to the Official Assignee; and

(f)leave is reserved to the Official Assignee and to the Bankrupt to apply by memorandum for any variation of the orders.

Associate Judge Johnston

Solicitors:
Insolvency & Trustee Service, Wellington for plaintiff