On 28 January, the application from the Inspector-General in Bankruptcy to set aside the personal insolvency agreement protecting Mr. Beau Hartnett was heard in the Federal Court of Australia. This action was brought by the Inspector-General in Bankruptcy last year.
This marks the first time the Inspector-General in Bankruptcy has brought this kind of action under the Bankruptcy Act 1966.
This follows an investigation by the Inspector-General into the circumstances surrounding the agreement and reflects his concern that the terms of the agreement were unreasonable or not in the interests of creditors generally.
An AFSA spokesperson said: “The Australian Financial Security Authority (AFSA) is establishing itself as an intelligence-led regulator, demonstrating a strong and balanced regulatory posture. AFSA is committed to protecting the integrity of Australia’s personal insolvency system”.
Background
- On Monday 26 August 2024, the Inspector-General in Bankruptcy applied to the Federal Court seeking to set aside a personal insolvency agreement protecting Gold Coast Lawyer Mr Beau Timothy Hartnett from bankruptcy.
- The application was against Mr. Hartnett and the trustees for the personal insolvency agreement.
- This follows an investigation by the Inspector-General, commenced in June 2024, which raised concerns that the terms of the agreement were unreasonable or not in the interests of creditors.
- The Inspector-General acted after becoming aware of concerns regarding Mr. Hartnett’s conduct and actions taken in relation to his personal insolvency.
- Beau Timothy John Hartnett was the principal of Hartnett Lawyers, a law firm based on Queensland’s Gold Coast.