At this stage, the trustee has not reached any determinations about the bankrupt’s conduct and examinable affairs. However, from the ongoing review there have been some matters identified which the trustee needs to seek some further information from the bankrupt. Depending on what this further information reveals it may be necessary then to seek legal advice as to whether there is a possible recovery action available to the trustee.
The trustee is also undertaking an assessment under the Bankruptcy Act’s income contribution scheme to establish whether Mr Sullivan is required to make an income contribution to the Estate for the first two contribution assessment periods. The trustee has prepared draft income assessments and given the unusual nature of the deemed income, has decided to seek comment from the bankrupt concerning certain aspects of their interpretation of the information that has been provided. The bankrupt, through his solicitor, did not agree with the interpretation of the income and the subsequent calculations to establish the level of income. After due consideration of the objections raised, the trustee has decided to seek legal advice on the draft income assessments and the comments received on behalf of the bankrupt.
Further, the trustee has advised that they anticipate a further update may be issued towards the end of September 2021.