Act No. 33 of 1966 as amended
Contents
Part I—Preliminary 1
1............ Short title [see Note 1]....................................................................... 1
2............ Commencement [see Note 1].............................................................. 1
4............ Repeal................................................................................................. 1
Part IA—Interpretation 2
5............ Interpretation...................................................................................... 2
5AA...... Place of origin of bankruptcy and insolvency matters..................... 16
5A......... Acting in accordance with a person’s directions or instructions...... 17
5B......... Associated entities: companies......................................................... 17
5C......... Associated entities: natural persons................................................. 18
5D......... Associated entities: partnerships..................................................... 19
5E.......... Associated entities: trusts................................................................ 19
5F.......... Controlling an entity in relation to a matter..................................... 20
5G......... Financial affairs of a company.......................................................... 21
5H......... Financial affairs of a natural person.................................................. 22
5J.......... Financial affairs of a partnership...................................................... 23
5K......... Financial affairs of a trust................................................................. 23
6............ Meaning of intent to defraud creditors............................................. 24
6A......... Statement of affairs for purposes other than Part XI....................... 24
6B......... Provision of statement of affairs under Part XI and statement of administration of estate of deceased person 25
6C......... Interpretive provisions relating to proceeds of crime orders............ 25
Part IB—Application of Act 27
7............ Application of Act........................................................................... 27
7A......... Application of the Criminal Code.................................................... 27
8............ Act to bind the Crown...................................................................... 27
9............ Laws of States and Territories not affected by Act......................... 28
Part II—Administration 29
Division 1—General 29
10.......... Delegation by Minister or Secretary................................................ 29
11.......... Inspector‑General in Bankruptcy..................................................... 29
12.......... Functions of Inspector‑General........................................................ 30
13.......... Bankruptcy Districts........................................................................ 33
15.......... Official Receivers.............................................................................. 33
16.......... Appointment of Inspector‑General and Official Receivers.............. 33
17.......... Acting Inspector‑General and Acting Official Receivers.................. 33
17B....... Arrangements for services of State and Northern Territory Magistrates 34
18.......... The Official Trustee in Bankruptcy................................................. 34
18AA.... Commonwealth Authorities and Companies Act 1997 does not apply to Official Trustee 36
18A....... Liability of the Official Trustee........................................................ 36
19.......... Duties etc. of trustee........................................................................ 37
19AA.... Power of investigation of bankrupt’s affairs.................................... 38
19A....... Liability of Inspector‑General, Official Receivers etc...................... 38
Division 2—Common Investment Fund 40
20A....... Interpretation.................................................................................... 40
20B....... The Common Investment Fund........................................................ 40
20D....... Investment of money in Common Fund........................................... 41
20E........ Borrowing for the Common Fund.................................................... 42
20F........ Moneys in Common Fund not held on account of particular estates etc. 43
20G....... Common Investment Fund Equalization Account........................... 44
20H....... Credits to and debits from the Equalization Account...................... 44
20J........ Interest on moneys in Common Fund payable only in certain circumstances 45
Part III—Courts 48
Division 2—Jurisdiction and powers of courts in bankruptcy 48
27.......... Bankruptcy courts............................................................................ 48
29.......... Courts to help each other................................................................. 48
30.......... General powers of Courts in bankruptcy......................................... 49
31.......... Exercise of jurisdiction...................................................................... 50
32.......... Costs................................................................................................. 51
33.......... Adjournment, amendment of process and extension and abridgment of times 51
33A....... Alteration of filing date for statement of affairs............................... 51
34.......... Orders and commissions for examination of witnesses.................... 52
34A....... Standard of proof.............................................................................. 52
35.......... Family Court’s jurisdiction in bankruptcy where trustee is a party to property settlement or spousal maintenance proceedings etc................................................................................. 52
35A....... Transfer of proceedings to Family Court......................................... 53
35B....... Family Court of Western Australia.................................................. 55
36.......... Enforcement of orders etc................................................................. 55
37.......... Power of Court to rescind orders etc................................................ 55
Part IV—Proceedings in connexion with bankruptcy 57
Division 1—Acts of bankruptcy 57
40.......... Acts of bankruptcy.......................................................................... 57
41.......... Bankruptcy notices.......................................................................... 61
42.......... Payment etc. of debt to Commonwealth or State after service of bankruptcy notice 63
Division 2—Creditors’ petitions 64
43.......... Jurisdiction to make sequestration orders........................................ 64
44.......... Conditions on which creditor may petition...................................... 64
45.......... Creditor’s petition against partnership............................................ 65
46.......... Petition against 2 or more joint debtors............................................ 66
47.......... Requirements as to creditor’s petition............................................. 66
49.......... Change of petitioners [see Table B]................................................. 66
50.......... Taking control of debtor’s property before sequestration [see Table B] 66
51.......... Costs of prosecuting creditor’s petition........................................... 68
52.......... Proceedings and order on creditor’s petition.................................... 68
53.......... Consolidation of proceedings........................................................... 69
54.......... Bankrupt’s statement of affairs........................................................ 69
Division 2A—Declaration of intention to present debtor’s petition 72
54A....... Presentation of declaration............................................................... 72
54B....... When debtor disqualified from presenting declaration..................... 72
54C....... Acceptance or rejection of declaration.............................................. 72
54D....... Official Receiver to give information to debtor................................ 73
54E........ Enforcement suspended during stay period..................................... 73
54F........ Duties of sheriff................................................................................ 73
54G....... Duty of court registrar...................................................................... 74
54H....... Duties of person entitled to deduct money owing to declared debtor 74
54J........ Extension of time where this Division prevents the doing of an act 75
54K....... Section 33 not to apply to this Division.......................................... 75
54L........ Secured creditor’s rights under security not affected....................... 75
Division 3—Debtors’ petitions 76
55.......... Debtor’s petition.............................................................................. 76
56A....... Persons who may present a debtor’s petition against a partnership 79
56B....... Presentation of a debtor’s petition against a partnership................. 80
56C....... Referral to the Court of a debtor’s petition against a partnership... 80
56D....... Acceptance of a debtor’s petition against a partnership by the Official Receiver 82
56E........ Effects of acceptance of a debtor’s petition against a partnership... 82
56F........ Extra duties of non‑petitioning partners who become bankrupts.... 83
56G....... Inspection of statements of affairs of partners and partnerships.... 83
57.......... Debtor’s petition by joint debtors who are not partners................. 84
57A....... Time at which person becomes bankrupt on debtor’s petition........ 88
Division 4—Effect of bankruptcy on property and proceedings 89
58.......... Vesting of property upon bankruptcy—general rule....................... 89
58A....... Vesting of property upon bankruptcy—effect of orders in force under the proceeds of crime law 90
59.......... Second or subsequent bankruptcy.................................................... 91
59A....... Orders under Part VIII of the Family Law Act 1975........................ 93
60.......... Stay of legal proceedings.................................................................. 93
61.......... Actions by bankrupt partner’s trustee............................................. 95
62.......... Actions on joint contracts................................................................ 95
63.......... Death of bankrupt............................................................................ 95
Division 5—Meetings of creditors 96
Subdivision A—Preliminary 96
63A....... Definitions [see Table B].................................................................. 96
63B....... Trustee’s representative [see Table B]............................................. 97
Subdivision B—Convening of meetings 97
64.......... Trustee to convene meetings [see Table B]...................................... 97
64A....... Persons to whom notice of meeting to be given [see Table B]......... 97
64B....... Certain matters to be included in notice of meeting [see Table B]... 98
64C....... If telephone conference facilities are available.................................. 98
64D....... Statement by creditor as to amount of debt [see Table B]............... 99
64E........ Notice about voting by proxy [see Table B].................................. 100
64F........ Notice about appointment of attorney........................................... 100
64G....... Agenda to be set out in notice of meeting [see Table B]................ 100
Subdivision C—Procedure before opening of meeting 101
64H....... Creditors, or proxies or attorneys, participating by telephone...... 101
64J........ Preparation of attendance record [see Table B].............................. 101
Subdivision D—Procedure at meetings 102
64K....... Opening of meeting [see Table B].................................................. 102
64L........ Appointment of minutes secretary [see Table B].......................... 103
64M...... Announcement of proxies and attorneys........................................ 104
64N....... Quorum [see Table B].................................................................... 104
64P........ Election of person to preside at meeting [see Table B].................. 105
64Q....... Whether holding of meeting is convenient to majority of creditors [see Table B] 106
64R....... Tabling of bankrupt’s statement of affairs [see Table B]............... 106
64S........ Statements and questions [see Table B]......................................... 106
64T....... Motions [see Table B].................................................................... 107
64U....... Remuneration of registered trustee [see Table B]........................... 107
64V....... Appointment of committee of inspection [see Table B]................ 108
64W...... Other business [see Table B].......................................................... 108
64X....... Next meeting [see Table B]............................................................. 108
Subdivision E—Miscellaneous 109
64Y....... Adjournment of meeting [see Table B]........................................... 109
64Z....... Duties of minutes secretary [see Table B]..................................... 109
64ZA.... Entitlement to vote [see Table B]................................................... 111
64ZB..... Manner of voting [see Table B]...................................................... 112
64ZBA.. Creditors’ resolution without meeting............................................ 113
64ZC..... Appointment of proxies [see Table B]........................................... 114
64ZD.... Provisions relating to motions and amendments of motions.......... 115
64ZE..... Joint bankruptcies [see Table B].................................................... 116
64ZF..... Substantial compliance to be sufficient.......................................... 116
Division 5A—Committee of inspection 117
70.......... Committee of inspection................................................................ 117
71.......... Vacation of office etc...................................................................... 118
72.......... Member of committee not to purchase part of estate.................... 118
Division 6—Composition or arrangement with creditors 120
73.......... Composition or arrangement [see Table B].................................... 120
73A....... Trustee may require surety for cost of meeting............................. 121
73B....... Declaration of relationships by proposed trustee of composition or scheme of arrangement 121
73C....... Statement of affairs and declarations of relationships to be tabled at meeting 122
74.......... Annulment of bankruptcy [see Table B]........................................ 123
74A....... Variation of composition or scheme of arrangement...................... 124
75.......... Effect of composition or scheme of arrangement [see Table B]..... 124
76.......... Application of Part VIII to trustee of a composition or arrangement 125
76A....... Meetings of creditors...................................................................... 125
76B....... Setting aside and termination of a composition or scheme of arrangement 125
Part V—Control over person and property of debtors and bankrupts 127
Division 1—General 127
77.......... Duties of bankrupt as to discovery etc. of property..................... 127
77AA.... Access by Official Receiver and others to premises...................... 128
77A....... Access by trustee to books of associated entity............................ 129
77C....... Power of Official Receiver to obtain information and evidence..... 130
77D....... Allowances and expenses in respect of attendance........................ 131
77E........ Advance on account of allowances and expenses........................... 132
77F........ Allowances and expenses to be paid out of bankrupt’s estate [see Table B] 133
78.......... Arrest of debtor or bankrupt.......................................................... 133
80.......... Notification of change in name, address or day‑time telephone number 134
81.......... Discovery of bankrupt’s property etc. [see Table B].................... 134
Division 2—Offshore information notices 139
81A....... Issue of notices............................................................................... 139
81B....... Extension of period of notice.......................................................... 139
81C....... Variation of notices......................................................................... 140
81D....... Withdrawal of notices..................................................................... 141
81E........ Notices may be included in same document................................... 141
81F........ Relationship between this Division and section 77C..................... 141
Division 3—Failure to comply with certain notices 142
81G....... Effect of non‑compliance with notice............................................. 142
Part VI—Administration of property 143
Division 1—Proof of debts 143
82.......... Debts provable in bankruptcy [see Table B]................................. 143
83.......... Debt not to be considered proved until admitted........................... 144
84.......... Manner of proving debts................................................................ 144
85.......... Proof by employees....................................................................... 146
86.......... Mutual credit and set‑off................................................................ 147
87.......... Deduction of discounts [see Table B]............................................ 147
88.......... Apportionment to principal and interest of payments made before bankruptcy [see Table B] 147
89.......... Apportionment where security realized before or after bankruptcy 148
90.......... Proof of debt by secured creditor................................................... 148
91.......... Redemption of security by trustee etc........................................... 149
92.......... Amendment of valuation................................................................ 150
93.......... Repayment of excess...................................................................... 150
94.......... Subsequent realization of security.................................................. 150
95.......... Proof in respect of distinct contracts [see Table B]....................... 151
96.......... Proof in respect of proportionate part of periodical payment....... 151
97.......... Production of bills of exchange and promissory notes................... 151
98.......... Amendment of proof of debt.......................................................... 151
100........ Costs of proving debts etc.............................................................. 152
101........ Inspection of proofs by creditors etc............................................. 152
102........ Admission or rejection of proofs.................................................... 152
103........ Debts to be rounded down to nearest dollar................................... 153
104........ Appeal against decision of trustee in respect of proof [see Table B] 153
105........ Costs of appeal............................................................................... 154
106........ Trustee may administer oaths etc................................................... 154
107........ Creditor not to receive more than the amount of his or her debt and interest 154
Division 2—Order of payment of debts 155
Subdivision A—General 155
108........ Debts proved to rank equally except as otherwise provided......... 155
109........ Priority payments [see Table B].................................................... 155
109A..... Debts due to employees [see Table B]........................................... 159
110........ Application of estates of joint debtors [see Table B].................... 160
113........ Apprenticeship etc. claims [see Table B]....................................... 160
114........ Payment of liabilities etc. incurred under terminated deed etc. [see Table B] 161
Subdivision B—The effect of proceeds of crime orders and applications for proceeds of crime orders 161
114A..... The effect of proceeds of crime orders........................................... 161
114B..... The effect of applications for proceeds of crime orders................. 162
114C..... Director of Public Prosecutions must notify the trustee of certain matters 162
Division 3—Property available for payment of debts 163
Subdivision A—General 163
115........ Commencement of bankruptcy...................................................... 163
116........ Property divisible among creditors [see Table B].......................... 164
117........ Policies of insurance against liabilities to third parties [see Table B] 170
118........ Execution by creditor against property of debtor who becomes a bankrupt etc. [see Table B] 171
119........ Duties of sheriff after receiving notice of presentation of petition etc. [see Table B] 174
119A..... Duties of sheriff after receiving notice of bankruptcy etc. [see Table B] 177
120........ Undervalued transactions............................................................... 179
121........ Transfers to defeat creditors........................................................... 181
121A..... Transactions where consideration given to a third party............... 184
122........ Avoidance of preferences [see Table B]......................................... 184
123........ Protection of certain transfers of property against relation back etc. [see Table B] 187
124........ Protection of certain payments to bankrupt etc. [see Table B]..... 188
125........ Certain accounts of undischarged bankrupt [see Table B]............. 189
126........ Dealings with undischarged bankrupt in respect of after‑acquired property [see Table B] 190
127........ Limitation of time for making claims by trustee etc. [see Table B] 190
128........ Notice to trustee where identity of vendor etc. with bankrupt in doubt 191
Subdivision B—Superannuation contributions 192
128A..... Simplified outline............................................................................ 192
128B..... Superannuation contributions made to defeat creditors—contributor is a person who later becomes a bankrupt 193
128C..... Superannuation contributions made to defeat creditors—contributor is a third party 194
128D..... Time for making claims by trustee................................................. 196
128N..... Definitions...................................................................................... 197
Division 4—Realization of property 198
129........ Trustee to take possession of property of bankrupt..................... 198
129AA.. Time limit for realising property.................................................... 199
129A..... Eligible judges................................................................................. 200
130........ Warrant for seizure of property connected with the bankrupt...... 200
132........ Vesting and transfer of property.................................................... 202
133........ Disclaimer of onerous property [see Table B]............................... 203
134........ Powers exercisable at discretion of trustee [see Table B]............... 206
136........ Right to pay off mortgages [see Table B]....................................... 208
137........ Right of trustee to inspect goods held as security [see Table B]... 208
138........ Limitation of trustee’s power in respect of copyright, patents etc. [see Table B] 209
139........ Protection of trustee from personal liability in certain cases [see Table B] 209
Division 4A—Orders in relation to property of entity controlled by bankrupt or from which bankrupt derived a benefit 211
139A..... Trustee may apply to Court.......................................................... 211
139B..... Application to be served on respondent entity.............................. 211
139C..... Who may appear at hearing............................................................ 211
139CA.. Definition of examinable period..................................................... 211
139D..... Order relating to property of entity other than a natural person... 212
139DA.. Order relating to property of natural person.................................. 213
139E...... Order relating to net worth of entity other than a natural person.. 214
139EA... Order relating to increase in value of property of natural person.. 215
139F...... Court to take account of interests of other persons....................... 215
139G..... Giving effect to orders under this Division.................................... 215
139H..... Entity entitled to claim in bankruptcy........................................... 216
Division 4B—Contribution by bankrupt and recovery of property 217
Subdivision A—Preliminary 217
139J...... Objects of Division......................................................................... 217
Subdivision B—Interpretation 217
139K..... Definitions...................................................................................... 217
Subdivision C—Income 219
139L...... Meaning of income......................................................................... 219
139M.... Derivation of income...................................................................... 221
139N..... Income varied by income tax payments and refunds and child support payments 222
Subdivision D—Liability of bankrupt to pay contributions 223
139P...... Liability of bankrupt to pay contribution...................................... 223
139Q..... Change in liability of bankrupt....................................................... 223
139R..... Liability not affected by subsequent discharge.............................. 224
139S...... Contribution payable by bankrupt................................................. 224
139T..... Determination of higher income threshold in cases of hardship..... 224
Subdivision E—Provision of information to trustee 226
139U..... Bankrupt to provide evidence of income........................................ 226
139V..... Power of trustee to require bankrupt to provide additional evidence 228
Subdivision F—Assessments of income and contribution 228
139W.... Assessment of bankrupt’s income and contribution...................... 228
139WA. No time limit on making assessment.............................................. 229
139X..... Basis of assessments...................................................................... 229
139Y..... Trustee may regard bankrupt as receiving reasonable remuneration 230
139Z..... If bankrupt claims not to be in receipt of income........................... 231
Subdivision G—Review of assessment 231
139ZA.. Internal review of assessment......................................................... 231
139ZC... Inspector‑General may request further information....................... 232
139ZD.. Decision on review......................................................................... 232
139ZE... Inspector‑General to notify bankrupt and trustee of decision....... 233
139ZF... Review of assessment decisions..................................................... 234
Subdivision H—When contribution payable 234
139ZG.. Payment of contribution................................................................. 234
139ZH.. If excess contribution paid.............................................................. 235
139ZI.... Notice of determinations................................................................ 235
Subdivision HA—Supervised account regime 236
139ZIA. Objects............................................................................................ 236
139ZIB. Definitions...................................................................................... 236
139ZIC. Trustee may determine that the supervised account regime applies to the bankrupt 238
139ZID. Revocation of determination........................................................... 238
139ZIDAWhen determination ceases to be in force...................................... 239
139ZIE.. Bankrupt must open and maintain supervised account.................. 240
139ZIEA...................................................................... New supervised account 241
139ZIF.. Bankrupt’s monetary income to be deposited to supervised account 242
139ZIG. Trustee to supervise withdrawals from supervised account.......... 244
139ZIH. Constructive income receipt arrangements..................................... 245
139ZIHANon‑monetary income receipt arrangements................................. 247
139ZII... Cash income.................................................................................... 248
139ZIIA Keeping of books............................................................................ 249
139ZIJ.. Injunctions...................................................................................... 250
139ZIK. Interim injunctions.......................................................................... 250
139ZIL.. Discharge etc. of injunctions........................................................... 250
139ZIM Certain limits on granting injunctions not to apply........................ 251
139ZIN. Other powers of the Court unaffected........................................... 251
139ZIO. Inspector‑General may review trustee’s decision.......................... 252
139ZIP.. Inspector‑General may request further information....................... 253
139ZIR. Inspector‑General’s decision on review......................................... 253
139ZIS.. Inspector‑General to notify bankrupt and trustee of decision....... 253
139ZIT. AAT review of decisions................................................................ 254
Subdivision I—Collection of money or property by Official Receiver from person other than the bankrupt 255
139ZJ.... Definition [see Table B]................................................................. 255
139ZK.. Persons to whom Subdivision applies [see Table B]..................... 255
139ZL... Official Receiver may require persons to make payments [see Table B] 256
139ZM. Power of Court to set aside notice................................................. 257
139ZN.. Charge over property..................................................................... 258
139ZO.. Failure to comply with notice........................................................ 259
139ZP... Employer not to dismiss or injure bankrupt because of giving of notice 259
Subdivision J—Collection of money or property by Official Receiver from party to transaction that is void against the trustee 260
139ZQ.. Official Receiver may require payment [see Table B].................... 260
139ZR... Charge over property [see Table B]............................................... 261
139ZS... Power of Court to set aside notice................................................. 262
139ZT... Failure to comply with notice........................................................ 262
Division 5—Distribution of property 263
140........ Declaration and distribution of dividends....................................... 263
141........ Joint and separate dividends........................................................... 264
142........ Apportionment of expenses of administration of joint and separate estates 264
143........ Provision to be made for creditors residing at a distance etc. [see Table B] 264
144........ Right of creditor who has not proved debt before declaration of dividend 265
145........ Final dividend................................................................................. 265
146........ Distribution of dividends where bankrupt fails to file statement of affairs [see Table B] 266
147........ No action for dividend.................................................................... 266
Part VII—Discharge and annulment 267
Division 1—Preliminary 267
148........ Misleading conduct by bankrupt.................................................... 267
Division 2—Discharge by operation of law 269
Subdivision A—Discharge after certain period 269
149........ Automatic discharge....................................................................... 269
149A..... Bankruptcy extended when objection made................................... 270
Subdivision B—Objections 271
149B..... Objection to discharge.................................................................... 271
149C..... Form of notice of objection............................................................ 271
149D..... Grounds of objection...................................................................... 271
149F...... Copy of notice of objection to be given to bankrupt..................... 273
149G..... Date of effect of objection.............................................................. 274
149H..... Trustee ceasing to object on some grounds.................................... 274
149J...... Withdrawal of objection................................................................. 274
Subdivision C—Review of objection 274
149K..... Internal review of objection............................................................ 274
149M.... Inspector‑General may request further information....................... 275
149N..... Decision on review......................................................................... 275
149P...... Inspector‑General to notify bankrupt and trustee of decision....... 276
149Q..... Review of decisions........................................................................ 277
Division 4—Provisions applicable to all discharges 278
152........ Discharged bankrupt to give assistance.......................................... 278
153........ Effect of discharge.......................................................................... 278
Division 5—Annulment of bankruptcy 280
153A..... Annulment on payment of debts.................................................... 280
153B..... Annulment by Court...................................................................... 281
154........ Effect of annulment........................................................................ 281
Part VIII—Trustees 283
Division 1—Appointment and official name 283
154A..... Application to become a registered trustee.................................... 283
155........ Processing of an application........................................................... 283
155A..... Committee’s decision on an application......................................... 284
155B..... Effect of committee’s decision....................................................... 286
155C..... Registration as a trustee.................................................................. 286
155D..... Extension of registration................................................................. 287
155E...... Application for change of conditions on practising as a registered trustee 287
155F...... Decision on application for change of conditions........................... 288
155G..... Voluntary termination of registration............................................. 288
155H..... Consideration of involuntary termination of registration............... 289
155I....... Decision on involuntary termination of registration....................... 290
155J...... After termination of registration..................................................... 291
155K..... Payment of fees etc. for application, registration and extension.... 291
156A..... Consent to act as trustee [see Table B].......................................... 291
157........ Appointment of trustees [see Table B].......................................... 293
158........ Appointment of more than one trustee etc. [see Table B]............. 294
159........ Vacancy in office of trustee [see Table B]...................................... 294
160........ Official Trustee to be trustee when no registered trustee is trustee [see Table B] 295
161........ Trustee may act in official name [see Table B].............................. 295
161A..... Registered trustee to notify Inspector‑General of certain events... 296
Division 2—Remuneration and costs 297
161B..... Trustee’s remuneration—minimum entitlement [see Table B]...... 297
162........ Trustee’s remuneration—general [see Table B]............................. 297
163........ Remuneration of the Official Trustee............................................. 298
163A..... Costs and expenses of Official Receiver......................................... 298
164........ Two or more trustees acting in succession..................................... 299
165........ Trustee not to accept extra benefit etc........................................... 299
167........ Taxation of costs............................................................................ 300
Division 3—Accounts and audits 302
168........ Trustee not to pay moneys into private account........................... 302
169........ Trustee to pay moneys into bank account..................................... 302
170........ Trustee to give Official Receiver and bankrupt information etc. [see Table B] 303
171........ Trustee to give and obtain receipts................................................. 303
173........ Books to be kept by trustee [see Table B]..................................... 304
174........ Trustee’s books when trading........................................................ 304
175........ Audit of trustee’s accounts............................................................ 304
176........ Court may order trustee to make good loss caused by breach of duty 305
Division 4—Control over trustees 306
177........ Control of creditors over trustees................................................... 306
178........ Appeal to Court against trustee’s decision etc............................... 306
179........ Control of trustees by the Court.................................................... 306
Division 5—Vacation of office 307
180........ Resignation of trustee [see Table B]............................................... 307
181........ Removal of trustee [see Table B]................................................... 307
181A..... Streamlined method for replacing trustee [see Table B]................. 307
182........ Bankruptcy of trustee etc............................................................... 308
183........ Release of registered trustee by the Court...................................... 308
184........ Release of registered trustee by operation of law after 7 years...... 309
184A..... Release of the Official Trustee....................................................... 309
Part IX—Debt agreements 311
Division 1—Definitions and procedures 311
185........ Definitions...................................................................................... 311
185A..... Procedures for dealing with proposals........................................... 312
185B..... Acceptance of a proposal............................................................... 313
Division 2—Debt agreement proposals 315
185C..... Giving a debt agreement proposal to the Official Receiver............ 315
185D..... Statement of affairs to be given with a debt agreement proposal... 316
185E...... Accepting a debt agreement proposal for processing..................... 317
185F...... Effect of accepting a debt agreement proposal for processing....... 318
185G..... Lapsing of a debt agreement proposal............................................ 318
Division 3—Making a debt agreement 320
185H..... Making a debt agreement................................................................ 320
185I....... Parties to a debt agreement............................................................. 320
185J...... Release of debtor from debts.......................................................... 320
185K..... Prevention of proceedings relating to debts.................................... 321
185L...... Distribution of property under a debt agreement........................... 321
Division 4—Varying a debt agreement 322
185M.... Varying a debt agreement................................................................ 322
Division 5—Ending a debt agreement 323
185N..... End of debt agreement on discharge of obligations under agreement 323
185P...... Terminating a debt agreement by accepting a proposal.................. 323
185Q..... Terminating a debt agreement by order of the Court...................... 324
185QA.. Terminating a debt agreement by special resolution of creditors... 325
185R..... Terminating a debt agreement by the bankruptcy of the debtor.... 325
185S...... Validity of things done under a debt agreement that was terminated 326
Division 6—Voiding a debt agreement 327
185T..... Applying for an order declaring a debt agreement void.................. 327
185U..... Making an order declaring a debt agreement void........................... 328
185V..... Validity of things done under a debt agreement that was declared void 328
Division 7—General provisions relating to debt agreements 329
185W.... Court directions to the Official Receiver........................................ 329
185X..... No stamp duty payable on a debt agreement................................. 329
185Y..... Delegation of powers and functions relating to processing of proposals 329
185Z..... Remuneration of registered trustees and other persons.................. 330
185ZA.. Notification of death of administrator............................................ 330
185ZB... Official Receiver to replace an administrator who dies.................. 331
185ZC... Official Receiver may appoint a new administrator....................... 331
185ZD.. Remuneration of administrator....................................................... 331
Division 8—Registration of debt agreement administrators etc. 332
Subdivision A—Introduction 332
186A..... Basic eligibility test........................................................................ 332
Subdivision B—Registration of debt agreement administrators 334
186B..... Application for registration as a debt agreement administrator...... 334
186C..... Inspector‑General must approve or refuse to approve registration application 334
186D..... Registration as a debt agreement administrator.............................. 336
186E...... Duration of registration as a debt agreement administrator............ 337
186F...... Conditions of registration—general................................................ 337
186G..... Condition of registration—companies............................................ 337
186H..... Application to change or remove registration conditions............... 338
Subdivision C—Surrender and cancellation of registration as a debt agreement administrator 339
186J...... Surrender of registration as a debt agreement administrator........... 339
186K..... Cancellation of an individual’s registration as a debt agreement administrator 339
186L...... Cancellation of a company’s registration as a debt agreement administrator 341
Subdivision D—Ineligibility of a person to act as a debt agreement administrator 342
186M.... Inspector‑General may declare a person ineligible to act as an administrator 342
Subdivision E—Miscellaneous 343
186N..... Return of certificate of registration................................................. 343
186P...... Cessation of registration as a debt agreement administrator—no refund of fees 345
186Q..... Guidelines relating to Inspector‑General’s powers........................ 345
Part X—Personal insolvency agreements 346
Division 1—Interpretation 346
187........ Interpretation.................................................................................. 346
187A..... Application of Part to joint debtors [see Table B]......................... 346
Division 2—Meeting of creditors and control of debtor’s property 347
188........ Debtor may authorise trustee or solicitor to be controlling trustee [see Table B] 347
188A..... Personal insolvency agreement [see Table B]................................. 349
188B..... Inspection of statement of debtor’s affairs.................................... 351
189........ Control of property of a debtor who has given authority under section 188 351
189AAA Stay of proceedings relating to creditor’s petition until meeting of debtor’s creditors 352
189AA.. Court orders with effect during period of control of debtor’s property 353
189AB.. Charge over debtor’s property that is subject to
control.....................
[see Table B]...................................................................................
354
189AC.. Right of indemnity for controlling trustee...................................... 355
189A..... Report and declaration by controlling trustee................................ 356
189B..... Controlling trustee to prepare statement about possible resolutions 357
190........ Duties and powers of controlling trustee....................................... 357
190A..... Additional duties of controlling trustee.......................................... 358
191........ Payments to protect property etc.................................................. 359
192........ Changing the controlling trustee..................................................... 359
194........ Time for calling meeting.................................................................. 360
194A..... Statement of affairs and declarations of relationships to be tabled at meeting 360
195........ Debtor to attend meeting................................................................ 361
196........ Procedure for calling and holding meeting....................................... 362
204........ Resolution for personal insolvency agreement............................... 362
205........ Duties of sheriff after receiving notice of signing of authority under section 188 etc. 363
205A..... Duties of sheriff after receiving notice of execution of personal insolvency agreement etc. 366
206........ Court may adjourn hearing of petition where creditors have passed resolution for personal insolvency agreement........................................................................................................ 370
207........ Surrender of security etc. where secured creditor has voted.......... 371
208........ Termination of control of debtor’s property by the Court............ 372
209........ Acts of controlling trustee to bind trustee of subsequent personal insolvency agreement or bankruptcy 372
210........ Other provisions about controlling trustee..................................... 373
211........ Other provisions about debtor....................................................... 373
Division 3—General provisions 374
215........ Eligibility to be trustee of personal insolvency agreement............. 374
215A..... Nomination or appointment of trustee of personal insolvency agreement 374
216........ Execution of personal insolvency agreements................................ 375
217........ Failure of trustee to execute personal insolvency agreement.......... 375
218........ Notice of execution of personal insolvency agreement................... 376
219........ Trustee may sue, be sued etc. by official name.............................. 376
220........ Filling of vacancy in office of trustee after execution of personal insolvency agreement etc. 377
221........ Sequestration order where debtor fails to attend meeting, execute personal insolvency agreement etc. 378
221A..... Variation of personal insolvency agreement................................... 379
222........ Court may set aside personal insolvency agreement...................... 380
222A..... Termination of personal insolvency agreement by trustee............. 383
222B..... Termination of personal insolvency agreement by creditors.......... 384
222C..... Court may terminate personal insolvency agreement..................... 384
222D..... Termination of personal insolvency agreement by occurrence of terminating event 386
223........ Calling of meetings after the first meeting...................................... 386
223A..... Rules in relation to meetings........................................................... 386
224........ Validity of acts if personal insolvency agreement set aside or terminated 387
224A..... Notice that a personal insolvency agreement has been set aside, varied or terminated 387
225........ Evidence of personal insolvency agreement, resolution etc............ 388
226........ Creditor may inspect personal insolvency agreement etc.............. 389
227........ Stamp duty not payable on personal insolvency agreements etc. entered into under this Part 389
229........ Personal insolvency agreement to bind all creditors....................... 390
230........ Release of provable debts............................................................... 391
231........ Application of general provisions of Act to personal insolvency agreements 392
231A..... Right of debtor to remaining property........................................... 393
232........ Certificate relating to discharge of obligations................................ 394
Part XI—Administration of estates of deceased persons in bankruptcy 395
244........ Administration of estates under this Part upon petition by creditor 395
245........ Debtor dying after presentation of creditor’s petition................... 397
246........ Statement of deceased debtor’s affairs etc. by legal personal representative 398
247........ Petition for administration under this Part by person administering deceased person’s estate 398
247A..... Commencement of administration under Part................................ 399
248........ Application of Act in relation to administrations under this Part.. 400
248A..... Consolidation of proceedings......................................................... 401
249........ Vesting of property on making of order......................................... 402
249A..... Charge over property owned in joint tenancy................................ 409
250........ Effect of order under Part where deceased person was bankrupt.. 410
251........ Real property devised by will that vests directly in devisee to form part of estate in certain cases 413
252........ Liability of legal personal representative........................................ 413
252A..... Annulment on payment of debts.................................................... 414
252B..... Annulment by Court...................................................................... 415
252C..... Effect of annulment........................................................................ 415
Part XIA—Farmers’ debts assistance 417
253A..... Interpretation.................................................................................. 417
253B..... Law of State or Territory may be proclaimed................................ 417
253C..... Notice about stay under proclaimed law........................................ 418
253E...... Relevant authority may apply for stay of proceedings under certain petitions 418
253F...... Relevant authority may be heard on application relating to debtor’s petition 419
Part XII—Unclaimed dividends or moneys