In the Supreme Court of Queensland case Thorn as Trustee in Bankruptcy for the Bankrupt Estate of Philip Cinzio v Mielnikowski [2024] QSC 249, the court dealt with the distribution of proceeds from the sale of a property jointly owned by the bankrupt Philip Cinzio and Linda Mielnikowski. The property was initially bought with both parties having equal shares, but over time, Cinzio stopped contributing to mortgage payments and outgoings following his bankruptcy, leaving Mielnikowski to carry the financial burden. Despite these circumstances, the court determined the distribution of proceeds would be split with 94% going to Mielnikowski and 6% to the trustee, reflecting her sustained financial contribution and residency. Additionally, the court addressed the remuneration of statutory trustees involved in the property's sale, granting them an adjusted fee due to the complexities arising from Mielnikowski's conduct and the property's poor condition. However, any remaining costs associated with the legal proceedings were ordered to be borne mainly by the bankrupt's estate.
Full text: https://www.sclqld.org.au/caselaw/150351