In Berryman v Zurich Australia Ltd [2016] WASC 196 it was decided that a bankrupt's entitlement to claim a TPD benefit under a life insurance policy is not an entitlement that is divisible amongst the bankrupt's creditors, and therefore such an entitlement does not vest in the Official Trustee in bankruptcy. Tottle J of the Supreme Court of Western Australia ruled that the bankrupt insured could continue an action in his own name to recover the TPD benefit. Life insurers may need to adjust their claims' payment practices in light of the Berryman decision.

Many creditors (including lenders) have learned the difficult lesson that payments received from a debtor within the 90-day period preceding a bankruptcy filing may be subject to refund as a preferential transfer. Many creditors also know that one of the defenses to a preferential transfer claim is what is referred to as an "ordinary course of business" defense, which excludes payments that are made within the ordinary course of dealing with the creditor and that are consistent with the ordinary practice in the industry.