By Jodie Rodrigues, Solicitor at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group.
Pursuant to s 102 of the Bankruptcy Act 1966 (Cth), a trustee is required to “examine each proof of debt and the grounds of the debt sought to be proved”.
Legal costs can often be a problematic consideration, when questions of assessment, and the nature of the costs claim are taken into account. It is therefore important to have regard to the type of costs claims (for instance those of the bankrupt’s own solicitors, or adverse costs orders against the bankrupt). It is also relevant to consider at what stage in any costs assessment process the question of costs is being considered. [...]
