Millionaire bankrupt's dishoarderly affairs

The interior of Arcadia Road
Photo courtesy BPS Recovery

BPS Recovery's Max Prentice wants guardians to manage the assets of a bankrupt who filled his five properties with newspapers, textbooks and batteries.

The bankrupt, who SiN has chosen not to identify, is a former university lecturer with a degree in chemical engineering and an extensive property portfolio.

"In 40 years in practice I have never had such an asset-rich bankrupt," Prentice, trustee in bankruptcy and co-principal of BPS Recovery said.

"The bankrupt had unencumbered title to four properties in Glebe and one in Newtown."

The bankrupt's debts are estimated at around $180,000, while the value of his assets exceeds $2 million. Normally this would result in an annulment, but there's nothing normal about this technical insolvency. 

The man was declared bankrupt on April 10, 2012 after utilities suppliers petitioned the Federal Court over thousands of dollars in outstanding bills.

Prentice accepted the appointment in June 2012 and immediately slapped caveats on a large Victorian terrace in Arcadia Road, Glebe, two apartments in nearby Sheehy St, another in Charlton Way and an apartment in Chelmsford Street, Newtown. None of the properties were encumbered by mortgages but neither the title deeds nor the bankrupt could be located.