BANKRUPTCY – creditor’s petition – debtor failed to comply with bankruptcy notice – act of bankruptcy committed – whether sequestration order against debtor’s estate should be made – unresolved claim against creditor with Australian Human Rights Commission – whether the debtor is solvent under s5(2) and (3) Bankruptcy Act 1966 -nature of solvency test – power of court to go behind the prima facie existence of a debt – no reason to go behind the judgment of the Queensland Court of Appeal concerning judgment debtor – petitioning creditor proved the necessary formal elements for court to make sequestration order under s52(1) Bankruptcy Act 1966 – debtor failed to evidence solvency under the test on the balance of probabilities – court not satisfied that debtor is solvent – sequestration order made against estate of debtor.
Original article available at: https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2023/2023fca0168
For more information, see the original judgement.
