It is now over 6 years since the Full Federal Court handed down its decision in the appeal case of Di Cioccio v Official Trustee in Bankruptcy (as Trustee of the Bankrupt Estate of Di Cioccio) [2015] FCAFC 30 (Cioccio). The Australian Financial Security Authority recently revisited the Cioccio decision in light of a number of subsequent decisions.
On 2 August 2021, Treasury released a consultation paper on proposed reforms to improve creditors’ schemes of arrangement in Australia. The proposed reforms are intended to complement the simplified liquidation and debt restructuring process introduced for small businesses on 1 January 2021, as a result of the COVID-19 pandemic.
What is a scheme of arrangement?
One of the key questions for an individual facing bankruptcy is how they can protect their assets from the trustee-in-bankruptcy (trustee) or from creditors. This is particularly relevant for the family/matrimonial home. One of the ways of protecting this asset is via the presumption of advancement.
This article explores a recent appeal case where the presumption of advancement, in relation to the family home, was rebutted.
What is the presumption of advancement?
A recent case handed down in the Supreme Court of New South Wales, Re Western Port Holdings Pty Ltd (rec and mgr apptd) (in liq) (2021) 39 ACLC ¶21-016; [2021] NSWSC 232, concerned the recoverability of payments as unfair preferences pursuant to Pt