BANKRUPTCY ACT 1966
Table of Provisions
PART I--PRELIMINARY
1 Short title 2 Commencement 4 Repeal 4A Insolvency Practice Schedule
PART IA--INTERPRETATION
5 Interpretation 5A Acting in accordance with a person's directions or instructions 5B Associated entities: companies 5C Associated entities: natural persons 5D Associated entities: partnerships 5E Associated entities: trusts 5F Controlling an entity in relation to a matter 5G Financial affairs of a company 5H Financial affairs of a natural person 5J Financial affairs of a partnership 5K Financial affairs of a trust 6 Meaning of intent to defraud creditors 6A Statement of affairs for purposes other than Part XI 6B Provision of statement of affairs under Part XI and statement of administration of estate of deceased person 6C Interpretive provisions relating to proceeds of crime orders 6D Approved forms
PART IB--APPLICATION--OF ACT
7 Application of Act 7A Application of the Criminal Code 8 Act binds the Crown 9 Laws of States and Territories not affected by Act
PART II--ADMINISTRATION
Division 1--General
10 Delegation by Minister or Secretary 11 Inspector - General in Bankruptcy 12 Functions of Inspector - General 13 The Australian Financial Security Authority 15 Official Receivers 16 Appointment of Inspector - General and Official Receivers 17 Acting Inspector - General and Acting Official Receivers 17B Arrangements for services of State Magistrates and Northern Territory Local Court Judges 18 The Official Trustee in Bankruptcy 18AA Public Governance, Performance and Accountability Act 2013 does not apply to the Official Trustee 18A Liability of the Official Trustee 19 Duties etc. of trustee 19AA Power of investigation of bankrupt's affairs 19A Liability of Inspector - General, Official Receivers etc. 19B Trustee to give Official Receiver information etc.
Division 2--Common Investment Fund
20A Interpretation 20B The Common Investment Fund 20D Investment of money in Common Fund 20E Borrowing for the Common Fund 20F Moneys in Common Fund not held on account of particular estates etc. 20G Common Investment Fund Equalization Account 20H Credits to and debits from the Equalization Account 20J Interest on moneys in Common Fund payable only in certain circumstances
PART III--COURTS
Division 2--Jurisdiction and powers of courts in bankruptcy
27 Bankruptcy courts 29 Courts to help each other 30 General powers of Courts in bankruptcy 31 Exercise of jurisdiction 32 Costs 33 Adjournment, amendment of process and extension and abridgment of times 33A Alteration of dates relating to statements of affairs and debtor's petitions 34 Orders and commissions for examination of witnesses 34A Standard of proof 35 Jurisdiction of the Federal Circuit and Family Court of Australia (Division 1) in bankruptcy where trustee is a party to property settlement or spousal maintenance proceedings etc. 35A Transfer of proceedings to Federal Circuit and Family Court of Australia (Division 1) 35B Family Court of Western Australia 36 Enforcement of orders etc. 37 Power of Court to rescind orders etc.
PART IV--PROCEEDINGS--IN CONNEXION WITH BANKRUPTCY
Division 1--Acts of bankruptcy
40 Acts of bankruptcy 41 Bankruptcy notices 42 Payment etc. of debt to Commonwealth or State after service of bankruptcy notice
Division 2--Creditors' petitions
43 Jurisdiction to make sequestration orders 44 Conditions on which creditor may petition 45 Creditor's petition against partnership 46 Petition against 2 or more joint debtors 47 Requirements as to creditor's petition 49 Change of petitioners 50 Taking control of debtor's property before sequestration 51 Costs of prosecuting creditor's petition 52 Proceedings and order on creditor's petition 53 Consolidation of proceedings 54 Bankrupt's statement of affairs
Division 2A--Declaration of intention to present debtor's petition
54A Presentation of declaration 54B When debtor disqualified from presenting declaration 54C Acceptance or rejection of declaration 54D Official Receiver to give information to debtor 54E Enforcement suspended during stay period 54F Duties of sheriff 54G Duty of court registrar 54H Duties of person entitled to deduct money owing to declared debtor 54J Extension of time where this Division prevents the doing of an act 54K Section 33 not to apply to this Division 54L Secured creditor's rights under security not affected
Division 3--Debtors' petitions
55 Debtor's petition 56A Persons who may present a debtor's petition against a partnership 56B Presentation of a debtor's petition against a partnership 56C Referral to the Court of a debtor's petition against a partnership 56D Acceptance of a debtor's petition against a partnership by the Official Receiver 56E Effects of acceptance of a debtor's petition against a partnership 56F Extra duties of non - petitioning partners who become bankrupts 56G Inspection of statements of affairs of partners and partnerships 57 Debtor's petition by joint debtors who are not partners 57A Time at which person becomes bankrupt on debtor's petition
Division 3A--Acceptance of statements of affairs by Official Receiver
57B Acceptance of statements of affairs by Official Receiver
Division 4--Effect of bankruptcy on property and proceedings
58 Vesting of property upon bankruptcy--general rule 58A Vesting of property upon bankruptcy--effect of orders in force under the proceeds of crime law 59 Second or subsequent bankruptcy 59A Orders to which sections 58 and 59 are subject 60 Stay of legal proceedings 61 Actions by bankrupt partner's trustee 62 Actions on joint contracts 63 Death of bankrupt
Division 6--Composition or arrangement with creditors
73 Composition or arrangement 73B Declaration of relationships by proposed trustee of composition or scheme of arrangement 74 Annulment of bankruptcy 74A Variation of composition or scheme of arrangement 75 Effect of composition or scheme of arrangement 76 Application of Part VIII and Schedule 2 to trustee of a composition or arrangement 76B Setting aside and termination of a composition or scheme of arrangement
PART V--CONTROL--OVER PERSON AND PROPERTY OF DEBTORS AND BANKRUPTS
Division 1--General
77 Duties of bankrupt as to discovery etc. of property 77AA Access by Official Receiver and others to premises 77A Access by trustee to books of associated entity 77C Power of Official Receiver to obtain information and evidence 77CA Power of Official Receiver to obtain statement of affairs 77D Allowances and expenses in respect of attendance 77E Advance on account of allowances and expenses 77F Allowances and expenses to be paid out of bankrupt's estate 78 Arrest of debtor or bankrupt 80 Notification of change in name, address or day - time telephone number 81 Discovery of bankrupt's property etc.
Division 2--Offshore information notices
81A Issue of notices 81B Extension of period of notice 81C Variation of notices 81D Withdrawal of notices 81E Notices may be included in same document 81F Relationship between this Division and section 77C
Division 3--Failure to comply with certain notices
81G Effect of non - compliance with notice
PART VI--ADMINISTRATION--OF PROPERTY
Division 1--Proof of debts
82 Debts provable in bankruptcy 83 Debt not to be considered proved until admitted 84 Manner of proving debts 85 Proof by employees 86 Mutual credit and set - off 87 Deduction of discounts 88 Apportionment to principal and interest of payments made before bankruptcy 89 Apportionment where security realized before or after bankruptcy 90 Proof of debt by secured creditor 91 Redemption of security by trustee etc. 92 Amendment of valuation 93 Repayment of excess 94 Subsequent realization of security 95 Proof in respect of distinct contracts 96 Proof in respect of proportionate part of periodical payment 97 Production of bills of exchange and promissory notes 98 Amendment of proof of debt 100 Costs of proving debts etc. 101 Inspection of proofs by creditors etc. 102 Admission or rejection of proofs 103 Debts to be rounded down to nearest dollar 104 Appeal against decision of trustee in respect of proof 105 Costs of appeal 106 Trustee may administer oaths etc. 107 Creditor not to receive more than the amount of his or her debt and interest
Division 2--Order of payment of debts
Subdivision A--General
108 Debts proved to rank equally except as otherwise provided 109 Priority payments 109A Debts due to employees 110 Application of estates of joint debtors 113 Apprenticeship etc. claims 114 Payment of liabilities etc. incurred under terminated deed etc. Subdivision B--The effect of proceeds of crime orders and applications for proceeds of crime orders
114A The effect of proceeds of crime orders 114B The effect of applications for proceeds of crime orders 114C Director of Public Prosecutions or Commissioner of the Australian Federal Police must notify the trustee of certain matters
Division 3--Property available for payment of debts
Subdivision A--General
115 Commencement of bankruptcy 116 Property divisible among creditors 117 Policies of insurance against liabilities to third parties 118 Execution by creditor against property of debtor who becomes a bankrupt etc. 119 Duties of sheriff after receiving notice of presentation of petition etc. 119A Duties of sheriff after receiving notice of bankruptcy etc. 120 Undervalued transactions 121 Transfers to defeat creditors 121A Transactions where consideration given to a third party 122 Avoidance of preferences 123 Protection of certain transfers of property against relation back etc. 124 Protection of certain payments to bankrupt etc. 125 Certain accounts of undischarged bankrupt 126 Dealings with undischarged bankrupt in respect of after - acquired property 127 Limitation of time for making claims by trustee etc. 128 Notice to trustee where identity of vendor etc. with bankrupt in doubt Subdivision B--Superannuation contributions
128A Simplified outline 128B Superannuation contributions made to defeat creditors--contributor is a person who later becomes a bankrupt 128C Superannuation contributions made to defeat creditors--contributor is a third party 128D Time for making claims by trustee 128E Superannuation account - freezing notice 128F Revocation of superannuation account - freezing notice 128G Copy of superannuation account - freezing notice to be given to trustee etc. 128H Consent of Official Receiver to the cashing etc. of a superannuation interest 128J Power of Court to set aside superannuation account - freezing notice 128K Judicial enforcement of superannuation account - freezing notices 128L Protection of trustee of eligible superannuation plan 128M References to a member of an eligible superannuation plan 128N Definitions
Division 4--Realization of property
129 Trustee to take possession of property of bankrupt 129AA Time limit for realising property 129A Eligible judges 130 Warrant for seizure of property connected with the bankrupt 132 Vesting and transfer of property 133 Disclaimer of onerous property 134 Powers exercisable at discretion of trustee 136 Right to pay off mortgages 137 Right of trustee to inspect goods held as security 138 Limitation of trustee 's power in respect of copyright, patents etc. 139 Protection of trustee from personal liability in certain cases
Division 4A--Orders in relation to property of entity controlled by bankrupt or from which bankrupt derived a benefit
139A Trustee may apply to Court 139B Application to be served on respondent entity 139C Who may appear at hearing 139CA Definition of examinable period 139D Order relating to property of entity other than a natural person 139DA Order relating to property of natural person 139E Order relating to net worth of entity other than a natural person 139EA Order relating to increase in value of property of natural person 139F Court to take account of interests of other persons 139G Giving effect to orders under this Division 139H Entity entitled to claim in bankruptcy
Division 4B--Contribution by bankrupt and recovery of property
Subdivision A--Preliminary
Division 5--Distribution of property
140 Declaration and distribution of dividends 141 Joint and separate dividends 142 Apportionment of expenses of administration of joint and separate estates 143 Provision to be made for creditors residing at a distance etc. 144 Right of creditor who has not proved debt before declaration of dividend 145 Final dividend 146 Distribution of dividends where bankrupt fails to file statement of affairs 147 No action for dividend
PART VII--DISCHARGE--AND ANNULMENT
Division 1--Preliminary
148 Misleading conduct by bankrupt
Division 2--Discharge by operation of law
Subdivision A--Discharge after certain period
149 Automatic discharge 149A Bankruptcy extended when objection made Subdivision B--Objections
149B Objection to discharge 149C Form of notice of objection 149D Grounds of objection 149F Copy of notice of objection to be given to bankrupt 149G Date of effect of objection 149H Trustee ceasing to object on some grounds 149J Withdrawal of objection Subdivision C--Review of objection
149K Internal review of objection 149M Inspector - General may request further information 149N Decision on review 149P Inspector - General to notify bankrupt and trustee of decision 149Q Review of decisions
Division 4--Provisions applicable to all discharges
152 Discharged bankrupt to give assistance 153 Effect of discharge
Division 5--Annulment of bankruptcy
PART VIII--TRUSTEES
Division 1--Appointment and official name
Division 2--Remuneration and costs of the Official Trustee and Official Receiver
Division 5--Vacation of office
PART IX--DEBT--AGREEMENTS
Division 1--Introduction
185 Definitions 185A Adequate and appropriate professional indemnity and fidelity insurance
Division 2--Debt agreement proposals
185C Giving a debt agreement proposal to the Official Receiver 185D Statement of affairs to be given with a debt agreement proposal 185E Accepting a debt agreement proposal for processing 185EA Processing of debt agreement proposal 185EB Inspection of creditor's statement 185EC Acceptance of a debt agreement proposal 185ED Cancellation of acceptance of debt agreement proposal for processing 185F Effect of accepting a debt agreement proposal for processing 185G Lapsing of a debt agreement proposal
Division 3--Making a debt agreement
185H Making a debt agreement 185I Parties to a debt agreement 185K Prevention of proceedings relating to debts
Division 3A--Duties of administrators
185LA Duties of an administrator--general 185LB Administrator to notify creditors of a 3 - month arrears default by a debtor 185LC Administrator to notify Official Receiver of a designated 6 - month arrears default by a debtor 185LD Administrator to maintain separate bank account 185LDA Offence relating to the trust account 185LE Administrator to keep accounts etc. 185LEA Annual return 185LF Succession of administrator 185LG Duties of an administrator in relation to debt agreements--extended meaning
Division 4--Varying a debt agreement
185M Varying a debt agreement 185MA Procedures for dealing with proposals to vary debt agreements 185MB Inspection of creditor's statement 185MC Acceptance of a proposal to vary a debt agreement 185MD Withdrawal of proposal to vary a debt agreement
Division 5--Ending a debt agreement
185N End of debt agreement on discharge of obligations under agreement 185NA Release of debtor from debts 185P Terminating a debt agreement by accepting a proposal 185PA Procedures for dealing with proposals to terminate debt agreements 185PB Inspection of creditor's statement 185PC Acceptance of a proposal to terminate a debt agreement 185PD Withdrawal of proposal to terminate a debt agreement 185Q Terminating a debt agreement by order of the Court 185QA Terminating a debt agreement--designated 6 - month arrears default 185R Terminating a debt agreement by the bankruptcy of the debtor 185S Validity of things done under a debt agreement that was terminated
Division 6--Voiding a debt agreement
185T Applying for an order declaring a debt agreement void 185U Making an order declaring a debt agreement void 185V Validity of things done under a debt agreement that was declared void
Division 7--General provisions relating to debt agreements
185W Court directions to the Official Receiver 185X No stamp duty payable on a debt agreement 185XA Secured creditors 185Y Money received by administrator to be held on trust 185Z Remuneration of administrator 185ZA Notification of death of administrator 185ZB Official Trustee to replace an administrator who dies etc. 185ZC Official Receiver may appoint a new administrator 185ZCA Court may order administrator to make good loss caused by breach of duty 185ZCB Control of administrators by the Court 185ZD Remuneration of administrator
Division 8--Registration of debt agreement administrators etc.
Subdivision A--Introduction
186A Basic eligibility test Subdivision B--Registration of debt agreement administrators
186B Application for registration as a debt agreement administrator 186C Inspector - General must approve or refuse to approve registration application 186D Registration as a debt agreement administrator 186E Duration of registration as a debt agreement administrator 186F Conditions of registration--general 186G Condition of registration--companies 186H Application to change or remove registration conditions Subdivision BA--Insurance
186HA Registered debt agreement administrator to maintain insurance Subdivision C--Surrender and cancellation of registration as a debt agreement administrator
186J Surrender of registration as a debt agreement administrator 186K Cancellation of an individual's registration as a debt agreement administrator 186L Cancellation of a company's registration as a debt agreement administrator 186LA Inspector - General may obtain information about debt agreement administration trust accounts 186LB Account - freezing notices--debt agreement administration trust accounts 186LC Power of court to set aside account - freezing notices 186LD Judicial enforcement of account - freezing notices 186LE Protection of bank Subdivision E--Miscellaneous
186N Return of certificate of registration 186P Cessation of registration as a debt agreement administrator--no refund of fees 186Q Guidelines relating to Inspector - General's powers
PART X--PERSONAL--INSOLVENCY AGREEMENTS
Division 1--Interpretation
187 Interpretation 187A Application of Part to joint debtors
Division 2--Meeting of creditors and control of debtor's property
188 Debtor may authorise trustee or solicitor to be controlling trustee 188A Personal insolvency agreement 188B Inspection of statement of debtor's affairs 189 Control of property of a debtor who has given authority under section 188 189AAA Stay of proceedings relating to creditor's petition until meeting of debtor's creditors 189AA Court orders with effect during period of control of debtor's property 189AB Charge over debtor's property that is subject to control 189AC Right of indemnity for controlling trustee 189A Report and declaration by controlling trustee 189B Controlling trustee to prepare statement about possible resolutions 190 Duties and powers of controlling trustee 190A Additional duties of controlling trustee 191 Payments to protect property etc. 192 Changing the controlling trustee 204 Resolution for personal insolvency agreement 205 Duties of sheriff after receiving notice of signing of authority under section 188 etc. 205A Duties of sheriff after receiving notice of execution of personal insolvency agreement etc. 206 Court may adjourn hearing of petition where creditors have passed resolution for personal insolvency agreement 207 Surrender of security etc. where secured creditor has voted 208 Termination of control of debtor's property by the Court 209 Acts of controlling trustee to bind trustee of subsequent personal insolvency agreement or bankruptcy 210 Other provisions about controlling trustee 211 Other provisions about debtor
Division 3--General provisions
215 Eligibility to be trustee of personal insolvency agreement 215A Nomination or appointment of trustee of personal insolvency agreement 216 Execution of personal insolvency agreements 217 Failure of trustee to execute personal insolvency agreement 218 Notice of execution of personal insolvency agreement 219 Trustee may sue, be sued etc. by official name 220 Filling of vacancy in office of trustee after execution of personal insolvency agreement etc. 221 Sequestration order where debtor fails to attend meeting, execute personal insolvency agreement etc. 221A Variation of personal insolvency agreement 222 Court may set aside personal insolvency agreement 222A Termination of personal insolvency agreement by trustee 222B Termination of personal insolvency agreement by creditors 222C Court may terminate personal insolvency agreement 222D Termination of personal insolvency agreement by occurrence of terminating event 224 Validity of acts if personal insolvency agreement set aside or terminated 224A Notice that a personal insolvency agreement has been set aside, varied or terminated 225 Evidence of personal insolvency agreement, resolution etc. 226 Creditor may inspect personal insolvency agreement etc. 227 Stamp duty not payable on personal insolvency agreements etc. entered into under this Part 229 Personal insolvency agreement to bind all creditors 230 Release of provable debts 231 Application of general provisions of Act to personal insolvency agreements 231A Right of debtor to remaining property 232 Certificate relating to discharge of obligations
PART XI--ADMINISTRATION--OF ESTATES OF DECEASED PERSONS IN BANKRUPTCY
244 Administration of estates under this Part upon petition by creditor 245 Debtor dying after presentation of creditor's petition 246 Statement of deceased debtor 's affairs etc. by legal personal representative 247 Petition for administration under this Part by person administering deceased person's estate 247A Commencement of administration under Part 248 Application of Act in relation to administrations under this Part 248A Consolidation of proceedings 249 Vesting of property on making of order 249A Charge over property owned in joint tenancy 250 Effect of order under Part where deceased person was bankrupt 251 Real property devised by will that vests directly in devisee to form part of estate in certain cases 252 Liability of legal personal representative 252A Annulment on payment of debts 252B Annulment by Court 252C Effect of annulment
PART XIA--FARMERS----DEBTS ASSISTANCE
253A Interpretation 253B Law of State or Territory may be proclaimed 253C Notice about stay under proclaimed law 253E Relevant authority may apply for stay of proceedings under certain petitions 253F Relevant authority may be heard on application relating to debtor 's petition
PART XII--UNCLAIMED--DIVIDENDS OR MONEYS
254 Payment of unclaimed moneys to the Commonwealth
PART XIII--EVIDENCE
255 Record of proceedings or evidence 256 Evidence of matters stated in notices published in Gazette 257 Evidence of proceedings at meetings of creditors or committee of inspection 258 Presumption about due convening of meetings etc. 262 Swearing of affidavits
PART XIV--OFFENCES
263 Concealment etc. of property etc. 263A False affidavits 263C False claims about a creditor's entitlement to vote 264A Failure of person to attend before the Court etc. 264B Arrest of person failing to attend before the Court etc. 264C Refusal to be sworn or give evidence etc. 264D Prevarication or evasion in the course of examination 264E Offences in relation to Registrar or magistrate conducting an examination 265 Failure of bankrupt or debtor to disclose property etc. 265A Offences relating to exercise of powers under section 77A or 130 266 Disposing or charging of property by person who becomes, or has become, a bankrupt 267 False declaration by debtor or bankrupt 267B Failure of person to provide information 267D Failure of person to attend 267E Arrest of person failing to attend before Official Receiver or authorised officer 267F Refusal to be sworn or give evidence etc. 267G Prevarication or evasion in the course of giving evidence 268 Offences in relation to personal insolvency agreements 269 Bankrupt or debtor who is a party to a debt agreement obtaining credit etc. without disclosing bankruptcy or debt agreement 270 Failure to keep proper books of account 271 Gambling or hazardous speculations 272 Leaving Australia with intent to defeat creditors etc. 273 Trial of offences constituted by refusal, failure or omission to act 275 Criminal liability not affected by discharge etc. 276 Trustee acting under a personal insolvency agreement that has been set aside 277 Punishment of contempt of court 277A Keeping of books in respect of period of bankruptcy 277B Infringement notices for offences
PART XV--PROVISIONS--RELATING TO THE BANKRUPTCY (ESTATE CHARGES ) ACT 1997
PART XVI--MISCELLANEOUS
301 Certain provisions in contracts etc. to be void 302 Certain provisions in bills of sale etc. to be void 302A Certain provisions in governing rules of superannuation funds and approved deposit funds to be void 302AB Certain provisions in RSA's terms and conditions to be void 302B Certain provisions in trust deeds void 303 Applications to Court 304 Parts of dollar to be disregarded in determining majority in value of creditors etc. 304A Indexation 305 Payment of expenses by Commonwealth 306 Formal defect not to invalidate proceedings 306A Protection of Registrars, magistrates etc. in relation to examinations 306B Protection in respect of reports 307 Proceedings in firm name 308 Representation of corporation etc. 309 Service of notices etc. 311 Stamp duty not payable on trustee's cheques or receipts 313 Audit of accounts and records of the Official Trustee and the Official Receivers 315 Regulations 316 Legislative instruments determining fees
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