Does borrowing to discharge a bankruptcy fall under the Consumer Credit Code?
First Mortgage Managed Investments Ltd v Oberlechner [2006] NSWSC 1397 (19 December 2006) Alfred Oberlechner wrote software for the Commonwealth Bank. He bought a number of investment properties. When he was made redundant he became depressed and as a result, hasn’t worked since 2000. His mortgage payments on the properties went unpaid. In August 2003, he was made bankrupt. However, at the time of the bankruptcy, he was solvent. The total value of his realisable assets exceeded his liabilities. The value of his investment properties was greater than the money owed on the mortgages. He tried to refinance. In May 2004, he borrowed $615,000 from First Mortgage Managed Investments Ltd on the security of new mortgages of two of his properties. Oberlechner signed declarations that he had received independent legal advice before signing the documents. The documents included a declaration that the credit provider was providing the credit “wholly or predominantly for business or investment purp
