Browse an Act, find a provision and read each section in context.
Browse Acts ↓If a creditor's claim is subject to a contingency or is for damages, or if, for some other reason, the amount of the claim is uncertain, the bankruptcy trustee may estimate the amount of the claim.
(1) If the bankruptcy trustee— (a) chooses not to estimate the amount of a creditor's claim in accordance with section 233; or (b) has estimated the amount of the claim but the creditor is dissatisfied with the estimate, the creditor may apply to the Court to make an order under subsection (2). (2)…
(1) A creditor's claim that would, but for the bankruptcy, be payable six months or more after the commencement of the bankruptcy is taken to be a claim for the present value of the debt. (2) The present value of the debt is to be calculated by deducting interest at the rate prescribed by the insolv…
If there have been mutual credits, mutual debts or other mutual dealings between a bankrupt and another person, the bankruptcy trustee shall— (a) take an account of what is due from the one party to the other in respect of those credits, debts or dealings; (b) set-off an amount due from one party to…
A creditor may claim interest up to the date on which the bankruptcy commences— (a) in the case of contract debt interest, at the rate specified in the contract that provides for interest on the debt; or (b) in the case of judgment debt interest, at the rate payable on the debt.
(1) The bankruptcy trustee shall pay interest on all allowed creditors' claims at the prescribed rate if surplus assets remain after the bankruptcy trustee has paid the claims. (2) The bankruptcy trustee shall pay the interest from and including the date on which the bankruptcy commences to the date…
(1) If there is a surplus after the bankruptcy trustee has paid post-bankruptcy interest as provided by section 238, the bankruptcy trustee shall pay additional interest on allowed proofs for a contract debt or judgment debt, by making up— (a) in the case of a contract debt, the difference between t…
For the purposes of sections 238 and 239, the prescribed rate of interest is the rate for the time being prescribed by the insolvency regulations for the purposes of those sections.
A creditor shall deduct from the creditor's claim any trade discount that the creditor would have given a debtor if the debtor had not become bankrupt.
If a creditor's security over assets of the bankrupt is wholly or partly void under a provision of this or any other Act, the creditor may prove as an unsecured creditor— (a) if the security is wholly void, for the whole of the debt; or (b) if the security is partly void, to the extent that the debt…
A person who obtained an order for costs against the bankrupt before the commencement of the bankruptcy may prove for the amount of those costs even if that amount is not fixed until after that commencement.
(1) If a bankrupt is, at the commencement of the bankruptcy, a shareholder of a company (not being a company that is in liquidation), the company may prove for— (a) the amount of unpaid calls on the bankrupt made before that commencement in respect of the bankrupt's shares; and (b) the value of the…
If, in relation to a bankruptcy— (a) a person is, at the commencement of the bankruptcy, a guarantor of, or is otherwise liable for a debt of, the bankrupt; and (b) the person discharges the debt or liability (before or after that commencement), the person is entitled to the benefit to subsection (3…
In this Division, "preferential claim" means a claim in respect of a debt listed in paragraphs 2, 3 or 4 of the Second Schedule.
(1) For the purpose of this Act, a bankrupt's preferential debts are those specified in paragraphs 2 to 4 of the Second Schedule and are payable as provided by that Schedule in priority to the bankrupt's other debts. (2) Debts of the bankrupt that are neither preferential debts nor debts to which se…
(1) This section applies to bankruptcy debts owed in respect of credit provided by a person who was the bankrupt's spouse at the commencement of the bankruptcy and so applies even if the person was not the bankrupt's spouse at the time the credit was provided. (2) Those debts— (a) rank in priority a…
If a payment has been made to a person on account of a preferential creditor out of money advanced by another person for that purpose, the other person has, in the bankruptcy, the same right of priority in respect of the money so advanced as the preferential creditor would have if the payment had no…
(1) If a landlord or other person has distrained on goods or effects of the bankrupt during the thirty day period before the bankruptcy commenced, the preferential claims are a first charge on the goods or effects so distrained, or the proceeds from their sale. (2) However, if any money is paid to a…
If a bankrupt is a partner of a firm, any creditor to whom the bankrupt is indebted jointly with the other partners of the firm is not entitled to receive money obtained from the realisation of the bankrupt's separate property until the claims of all of the other creditors have been paid in full.
(1) On realising the bankrupt's estate or so much of it as can be realised without needlessly protracting the bankruptcy trusteeship, the bankruptcy trustee shall give notice either— (a) of an intention to declare a final dividend; or (b) that no dividend, or further dividend, will be declared. (2)…
(1) Subject to this section, if— (a) it appears to the bankruptcy trustee that the administration of the bankrupt's estate in accordance with this Division is for practical purposes complete; and (b) the bankruptcy trustee is not the Official Receiver, the bankruptcy trustee shall summon a final gen…
(1) A bankrupt is automatically discharged from bankruptcy three years after the bankrupt lodged a statement of the bankrupt's financial position in accordance with section 50, but may apply to be discharged earlier. (2) However, a bankrupt is not automatically discharged if— (a) the bankruptcy trus…
The automatic discharge of the bankrupt has the same effect as if the Court made an order for the bankrupt's discharge.
(1) The bankruptcy trustee, the Official Receiver (if not the bankruptcy trustee) or, with the approval of the Court, a creditor may object to a bankrupt's automatic discharge. (2) An objection has no effect unless it is made in the manner and form prescribed by the insolvency regulations.
(1) An objection to the automatic discharge of the bankrupt may be withdrawn in the manner prescribed by the insolvency regulations. (2) A bankrupt is automatically discharged on the withdrawal of the objection if— (a) the three-year period referred to in section 254(1) has elapsed; (b) there is no…
(1) A bankrupt may at any time apply to the Court for an order of discharge from bankruptcy. (2) However, if the Court has previously refused an application by the bankrupt for a discharge, and has specified the earliest date when the bankrupt may again apply, the bankrupt may not make another appli…
(1) The bankruptcy trustee shall summon the bankrupt to be publicly examined before the Court concerning the bankrupt's discharge if— (a) the bankruptcy trustee or a creditor has objected to the bankrupt's automatic discharge and the objection has not been withdrawn; (b) the bankrupt is due for auto…
(1) The bankruptcy trustee shall prepare a report and lodge it with the Court when— (a) the bankrupt has applied under section 258 for a discharge; or (b) the bankruptcy trustee has summoned the bankrupt to be examined in accordance with section 259. (2) The bankruptcy trustee shall include in the r…
(1) A creditor shall give to the bankruptcy trustee and the bankrupt a notice that complies with subsection (2) if the creditor intends to oppose the bankrupt's discharge on a ground that is not mentioned in the bankruptcy trustee's report. (2) A notice complies with this subsection if it— (a) speci…
(1) On hearing an application made under section 258, or the holding of a public examination of the bankrupt under section 259, the Court may— (a) immediately discharge the bankrupt; (b) discharge the bankrupt on conditions; (c) discharge the bankrupt but suspend the order for a specified period; or…