Section 60(2) of the Bankruptcy Act 1966 (Cth) stays an action commenced by a person who subsequently becomes bankrupt even where the action was commenced in the person's capacity as trustee for a trust, not in a personal capacity. The exception in s 60(4) for 'personal injury or wrong done to the bankrupt' does not extend to claims for unjust enrichment or unconscionable conduct. Trust beneficiaries whose trustee becomes bankrupt may need to institute proceedings in their own right in exceptional circumstances.
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