Secton 85A of the Bankruptcy Act 1988 as Amended and Harold Moore, a Bankrupt
| Jurisdiction | Ireland |
| Judge | Humphreys J. |
| Judgment Date | 30 September 2021 |
| Neutral Citation | [2021] IEHC 592 |
| Court | High Court |
| Docket Number | [Bankruptcy No. 5126] |
[2021] IEHC 592
[Bankruptcy No. 5126]
THE HIGH COURT
BANKRUPTCY
Bankruptcy – Extension – Bankruptcy Act 1988 s. 85A(4) – Official Assignee seeking an extension of the term of bankruptcy – Whether non-cooperation or non-disclosure had been established
Facts: The debtor, Mr Moore, was adjudicated bankrupt on 17th February, 2020. On 27th January, 2021, the Official Assignee filed a motion seeking relief under s. 85A(3) of the Bankruptcy Act 1988 which allows for extension of the term of bankruptcy due to non-co-operation or non-disclosure. The core reliefs were at para. 2 of the motion for an interim extension of the bankruptcy, and at para. 3 for an extension under s. 85A(4) for such period as the court might determine. The High Court (Humphreys J) granted the interim extension on 8th February, 2021 in accordance with para. 2 of the motion. Para. 3, the final extension, was outstanding. The Official Assignee submitted that this was at the serious end of the spectrum and suggested an extension of eight years.
Held by Humphreys J that there must be a presumption in favour of an extension if non-cooperation or non-disclosure has been established, and that this was amply justified in this case. Humphreys J found it particularly significant that there was complete non-disclosure during the normal one-year period of the bankruptcy. He held that this was not rendered legally irrelevant by late efforts at compliance.
Humphreys J held that, but for the belated cooperation, he would have agreed with the Official Assignee on an eight-year extension. Allowing credit for that belated cooperation, Humphreys J extended the bankruptcy for seven years from the date of adjudication.
Relief granted.
JUDGMENT of Humphreys J. delivered on Thursday the 30th day of September, 2021
The debtor was adjudicated bankrupt on 17th February, 2020.
On 27th January, 2021, the Official Assignee filed a motion seeking relief under s. 85A(3) of the Bankruptcy Act 1988 which allows for extension of the term of bankruptcy due to non-co-operation or non-disclosure. The core reliefs were at para. 2 of the motion for an interim extension of the bankruptcy, and at para. 3 for an extension under s. 85A(4) for such period as the court might determine. I granted the interim extension on 8th February, 2021 in accordance with para. 2 of the motion. What is outstanding now is para. 3, the final extension.
The bankrupt says that on 9th February, 2012, the Revenue issued a notice of assessment for VAT for periods between 1st March, 2011 to 31st August, 2011. He said that his accountant failed to deal with this by way of appeal, despite instructions.
A late appeal application was refused by Revenue on 6th September, 2012. That was appealed to the Appeal Commissioners, but was refused on 16th July, 2013.
On 26th July, 2013, he sought a case stated, but that does not seem to have resolved the matter.
Also in 2013, assessments were issued for capital gains tax and income tax, but were not appealed.
In 2014, Revenue proceedings were instituted: Gladney v. Moore [2014 No. 240 R]. On 26th July, 2016 summary judgment was given in favour of Revenue. The debtor then sued his accountants: Moore v. Carr [2016 No. 7825 P].
As noted above the debtor was adjudicated bankrupt on 17th February, 2020 but failed to deliver a statement of personal information, a statement of affairs or an income assessment form despite six requests between 21st February, 2020 and 11th November, 2020.
In August 2020, the bankrupt suffered a heart attack and was admitted to hospital.
The grounding affidavit for the application to extend the duration of bankruptcy was sworn on 26th January, 2021.
There were five attempts at personal service between 29th to 30th January, 2021 but the summons server was refused access by a person in the bankrupt's dwelling.
I heard the motion on 19th April, 2021 but gave the bankrupt a further opportunity to put in information. That was not promptly taken up. I was told that the bankrupt had a car accident and was hospitalised in April 2021. But it took until May, 2021 to deliver a statement of affairs and an income assessment form, and until July, 2021 to deliver a statement of personal information.
Of notable importance is that none of this information was delivered during the normal one-year...
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