Bankrupt
Southland District Health Board psychiatrist Abraham Nicolaas van der Walt was ordered
to catch up on $62,320 owed the Insolvency Service for unpaid contributions to
creditor claims and further ordered to pay about $3300 per fortnight from his
current salary until a July 2019 discharge from his bankruptcy.
Mr van de Walt
challenged Insolvency Service assessments of contributions required. The Insolvency Act requires bankrupts to
contribute towards bankruptcy debts out of income earned whilst bankrupt.
The High Court was told
Mr van der Walt was bankrupted in late 2015.
His former wife claims $243,941 for maintenance. His net fortnightly pay is about $7500. In dispute before the High Court was an
Insolvency Service assessment that he contribute $3333 per fortnight. Mr van der Walt claimed this was too
much. There was insufficient allowance for
health and fitness expenses or entertainment and travel expenses, he said. Associate judge Osborne ruled Mr van der Walt
had not proved that a higher allowance was reasonably required. The court was told Mr van der Walt stopped
making contributions from pay thirteen months ago. The District Health Board was ordered to make
salary deductions in future of $3333 each pay period, payable to the Insolvency
Service.
When assessing appropriate
contributions from bankrupts’ income, Insolvency Service uses data from
Statistics New Zealand cost of living surveys together with Working for
Families thresholds used by Inland Revenue to calculate tax credits.
Official
Assignee v. van der Walt – High Court (19.07.17)
17.084