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Post-Bankruptcy Interest Remains Recoverable against a Bankrupt

Oct 27, 2015

Post-bankruptcy interest is not provable against the defendant’s bankrupt estate, irrespective of whether or not his bankruptcy has a surplus, so that the plaintiff can in any event recover interest from the defendant at the court rate based on the debt owed to her as at the date of the defendant’s bankruptcy. White v Spithas (No 3) (1094 of 2005) .pdf

The  finding of the Supreme Court of Tasmania in Edwards v Stocks [2008] TASSC 112that interest was payable only in qualified circumstances (namely if there was a surplus in the estate) appears to be at odds both with the provisions of the legislation and with the reasoning of the High Court in Coventry v Charter Pacific Corporation Limited [2005] HCA 67and Foots v Southern Cross Mine Management Pty Ltd [2007] HCA 56.



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