Victorian Consolidated Legislation

Administration and Probate Act 1958 - SECT 36

Creditors to stand in equal degree

36. Creditors to stand in equal degree



(1) In the administration of the estate of any person no debt or liability of
such person shall be entitled to any priority or preference by reason merely
that the same is secured by or arises under a bond deed or other instrument
under seal or is otherwise made or constituted a specialty debt, but all the
creditors of such person as well specialty as simple contract shall be treated
as standing in equal degree and be paid accordingly out of the assets of such
deceased person, whether such assets are legal or equitable any statute or law
to the contrary notwithstanding: Provided that this Part shall not prejudice
or affect any lien charge or other security which any creditor may hold or be
entitled to for payment of his debt.

(2) In the administration of the estate of any person debts of record whether
of record in the lifetime of such person or obtained against his executor or
administrator for debts incurred by the deceased shall rank in the same degree
as if they were specialty or simple contract debts.

(3) Every person who has obtained or obtains probate of the will or
administration of the estate of a deceased person shall pay all and singular
the just debts of such deceased person in due course of administration
rateably and proportionably and according to the priority required by law but
without preferring his own debt by reason of his having obtained such probate
or administration.