The High Court has refused an application to extend Haleh Schlesinger's bankruptcy for up to eight years, despite finding that significant questions remain about the disappearance of proceeds from a €2 million settlement and transactions involving Liechtenstein entities.
Schlesinger was adjudicated bankrupt on her own petition on 11 March 2024. Her principal creditor, Matthias Ochsen Gutachter GmbH, applied shortly before the first anniversary to prevent her automatic discharge. It alleged that she had failed to cooperate with the Official Assignee or concealed assets, including settlement proceeds received from Allianz in 2020.
Mr Justice Kennedy initially made an interim order on 10 March 2025 keeping the bankruptcy in place while matters were investigated. Following further evidence and a hearing on 24 March, he rescinded that order and refused the relief sought.
The court accepted that questions remained about the settlement proceeds, alleged repayments to Schlesinger's husband, her pension and transactions involving Chiara Stiftung and Chiara GmbH. However, the Official Assignee said Schlesinger had largely cooperated, attended an interview and responded to repeated requests for information. His investigations would continue whether or not she remained bankrupt.
The judge also criticised the creditor's conduct of the application. It was brought less than two weeks before the scheduled discharge, despite the creditor knowing of the bankruptcy months earlier. Material German prosecutorial and court decisions adverse to parts of its case were not disclosed when it sought urgent relief.
Two affidavits from the creditor's principal, Matthias Ochsen, were also ruled inadmissible because they were sworn in English even though he had virtually no English, contrary to the Rules of the Superior Courts governing foreign-language affidavits.
Mr Justice Kennedy said the omitted German material was significant and the original presentation had been misleading and unfair to Schlesinger.
The court concluded that the interests of creditors could be protected through the Official Assignee's continuing investigation without the penal step of extending the bankruptcy.