BANKRUPTCY RULES (AMENDMENT) 1993 NO. 90

BANKRUPTCY RULES (AMENDMENT) 1993 NO. 90

Statutory Rules 1993 No. 90

Issued by the authority of the Minister for Justice

Bankruptcy Act 1966

Bankruptcy Rules (Amendment)

The Bankruptcy Rules (Amendment) made amendments to the Bankruptcy Rules in relation to remuneration of the Official Trustee in Bankruptcy and solicitors.

Details of rules

Rule 1 - Commencement

Rule 1 provided that these rules commenced on 1 June 1993.

Rule 2 - Amendment

Rule 2 provided that the Bankruptcy Rules (the Rules) have been amended as set out in these rules.

Rule 3 - Rule 162 (Scale of costs)

Rule 162 of the Rules prescribes for solicitors' costs in bankruptcy proceedings and bankruptcy related matters. Subrule 162(1) provides that in all proceedings solicitors are entitled to charge and be allowed costs as specified in Schedule 3. Subrules 162(2) and (2A) enable solicitors to furnish a lump sum, rather than an itemised account, in respect of certain proceedings.

Rule 3 added new subrule 1.62(2B) to increase costs specified in rule 162 and Schedule 3, incurred on or after the commencement of this new subrule, by 2.92%.

Rule 4 - Rule 182 (Fees and percentages payable to the Official Trustee)

Rule 182 fixes the fees and percentages payable to the Official Trustee as remuneration. Subrule 182(2) prescribes fees payable to the Official Trustee on a scale based on the "prescribed amount" in respect of an estate or a debtor. Subrule 182(4) defines a "prescribed amount" for the purposes of subrule 182(2). Fees payable to the Official Trustee are fixed where the "prescribed amount" of the estate or the debtor does not exceed $1000, exceeds $1000 but not $20,000, exceeds $20, 000 but not $40 000 or is in excess of $40, 000, as prescribed respectively in paragraphs 182(2)(d), (e), (f) and (g).

Rule 4 amended subrule 182(2) to omit paragraphs 182(2)(e), (f) and (g) and substituted new paragraphs 182(2)(e) and (f), to simplify the present scale by reducing the points on the current scale from four to three. Thus, under subrule 182(2)(d) the Official Trustee is entitled to receive a fee of $1000, where the "prescribed amount" of the estate or the debtor does not exceed $1000. Under new paragraph 182(2)(e) where the "prescribed amount" exceeds $1000 but does not exceed $50,000, the Official Trustee is entitled to receive a fee equal to the sum of $1000 and an amount equal to 15% of the amount by which the prescribed amount exceeds $1000. New paragraph 182(2)(f) prescribes that where the "prescribed amount" in respect of the estate or debtor exceeds $50 000, the Official Trustee is entitled to receive a fee equal to the sum of $8,350 and an amount equal to 10% of the amount by which the prescribed amount exceeds $50,000.

Rule 5 - Schedule 6 (Official Trustee's fees)

Subrule 5.1 corrected an erroneous reference to the prescribing rule in the heading of Schedule 6 by the omission of the words "Subrule 182(1A)" and the substitution of the words "Subrule 182(1)".

The fees specified in Schedule 6 as payable to the Official Trustee in respect of the taking of an inventory of property at item 1 and for giving notices of matters, such as meetings of creditors and Court sittings, specified at item 4 were increased. As such, subrules 5.2, 5.3 and 5.4 substituted the new fees at column 3 of item 1 and paragraphs (c) and (d) of item 4.