M v H - [2024] 3 NZLR 44

Insolvency — Debtor initiated adjudication — Annulment — Principles — No jurisdiction — Not insolvent — Not bankruptcy purpose — Abuse of process — Collateral advantage — Not if further application simple — If no balance sheet insolvency — Burden on debtor — Unable to pay debts — No change of principle by $1,000 minimum combined debts — Insolvency Act 2006 s 45.

Insolvency — Debtor initiated adjudication — Annulment — Court continues to have power to annul — Improper purpose — Abuse of process — Improper purpose predominant purpose — Not sole purpose — Onus heavy to establish abuse of process — No meaningful difference between abuse of court process and abuse of statutory bankruptcy processes — Improper or collateral purpose substantial purpose — Not sole purpose — If statutory processes abused court discretion to annul — Insolvency Act 2006 s 309(1)(a).

Insolvency — Adjudication to circumvent claim to half share of family home — Not contemplated by bankruptcy regime — No reason not to exercise discretion — Annul bankruptcy — Official Assignee not liable for costs — Official Assignee entitled to charge over family home for fees and expenses.