Allowances and expenses to be paid out of debtor’s property subject to personal insolvency agreement
77F Allowances and expenses to be paid out of debtor’s property subject to personal insolvency agreement
If the evidence that a person gives, or the books that a person produces, under section 77C, relate to matters concerning the property of a debtor that is subject to a personal insolvency agreement, any amount payable to the person under section 77D or 77E is to be paid out of that property.
Part 5—Modifications under subsection 231(3) of the Act—personal insolvency agreements
See subsection 69(2).
Bankruptcy Act 1966
30 Subsection 113(1)
Omit “presentation of a petition on which, or by virtue of the presentation of which, a person became a bankrupt”, substitute “making of a sequestration order”.
31 Subsection 113(1)
Omit “or, in the case of a debtor’s petition, the presentation of the petition”.
32 At the end of section 133
Add:
This section does not apply in relation to a personal insolvency agreement.
33 After paragraph 134(1)(b)
Insert:
carry on a business of the debtor in accordance with an authorisation given under subsection (4);
34 At the end of section 134
Add:
If a personal insolvency agreement provides for the business of the debtor to be assigned to the trustee, the agreement may:
authorise the trustee to carry on a business of a debtor; and
specify the period during which, and the conditions (if any) subject to which, the trustee may carry on the business.
The creditors may vary or terminate an authority under subsection (4) by passing a special resolution to that effect at a meeting.
This section extends only in relation to property of the debtor that is subject to the personal insolvency agreement.
35 Subsection 136(1)
Omit “Where any property of the bankrupt is subject to a mortgage”, substitute “Where any property of the debtor that is subject to the personal insolvency agreement is also subject to a mortgage”.
36 Subsection 137(1)
Omit “Where goods of a bankrupt”, substitute “Where goods of a debtor that are subject to a personal insolvency agreement”.
37 Paragraphs 138(1)(a) and (b)
Repeal the paragraphs, substitute:
the property of a debtor that is subject to a personal insolvency agreement includes rights in respect of industrial property; and
the debtor is liable to pay royalties or a share of profits to a person in respect of those rights;
38 Paragraphs 138(1)(c) and (d)
Omit “the bankrupt”, substitute “the debtor”.
39 Paragraphs 139(1)(a) and (b)
Repeal the paragraphs, substitute:
the trustee has seized or disposed of any goods in the possession or on the premises of a debtor that are subject to a personal insolvency agreement without notice of any claim by any person in respect of those goods; and
the goods were not, at the date of execution of the personal insolvency agreement, the property of the debtor;
40 Subsection 139(2)
Omit all the words after “in respect of property”, substitute:
that is subject to the personal insolvency agreement, being rates, land tax or municipal or other statutory charges that fall due on or after the date of execution of the personal insolvency agreement, except to the extent, if any, of the rents and profits received by the trustee in respect of that property on or after the date of execution of the personal insolvency agreement
41 Subsection 139(3)
Repeal the subsection, substitute:
Where the trustee of a personal insolvency agreement carries on a business previously carried on by the debtor, the trustee is not personally liable for any payment in respect of long service leave or extended leave:
for which the debtor was liable; or
to which a person employed by the trustee in the person’s capacity as trustee of the personal insolvency agreement, or the legal personal representative of such a person, becomes entitled after the date of execution of the personal insolvency agreement.
42 Subsection 139(4)
Omit “the estate of a bankrupt”, substitute “a personal insolvency agreement”.
43 Section 139ZJ
Before “In”, insert “(1)”.
44 At the end of section 139ZJ
Add:
In sections 139ZK, 139ZL and 139ZP, a reference to a bankrupt is to be read as a reference to a debtor.
In subsection (2):
debtor means a person who has executed a personal insolvency agreement.
45 Paragraphs 139ZK(1)(e) and (f)
Omit “bankruptcy”, substitute “personal insolvency agreement”.
46 Subsection 139ZL(1)
Omit “If a bankrupt is liable to pay to the trustee a contribution under section 139P or 139Q, the Official Receiver”, substitute “If a debtor is liable to pay a specified amount of the debtor’s income to the trustee in accordance with a personal insolvency agreement, the Official Receiver”.
47 Subsection 139ZL(1)
Omit “make the contribution”, substitute “pay that amount”.
48 Paragraphs 139ZL(3)(a) and (b)
Omit “the contribution”, substitute “the amount of income”.
49 Subsection 139ZQ(1)
Omit “bankrupt under Division 3”, substitute “personal insolvency agreement because of the application of any of sections 120 to 125”.
50 Subsection 139ZR(3)
Omit “Division 3”, substitute “any of sections 120 to 125”.
Schedule 4—Modifications under Part XI of the Act—administration of estates of deceased persons
See section 71.
Bankruptcy Act 1966
1 Section 49
Omit “debtor”, substitute “deceased debtor’s estate”.
2 Subsection 50(1)
Omit “debtor, but before the debtor becomes”, substitute “debtor who dies after presentation of a creditor’s petition but before becoming”.
3 Paragraph 50(1)(a)
Omit “debtor’s property”, substitute “deceased debtor’s estate”.
4 Paragraph 50(1)(b)
Omit “property”, substitute “estate”.
5 Paragraph 50(1A)(c)
Omit “debtor”, substitute “deceased debtor’s legal personal representative”.
6 Subsection 50(1B)
Omit “debtor’s property”, substitute “deceased debtor’s estate”.
7 Subsection 50(2)
Omit “debtor” (first occurring), substitute “legal personal representative of the deceased debtor”.
8 Subsection 50(2)
Before “debtor” (second and third occurring), insert “deceased debtor”.
9 Subsection 50(3)
Omit “debtor and the debtor’s”, substitute “deceased debtor and the deceased debtor’s”.
10 Subsection 50(4)
Before “debtor” (wherever occurring), insert “deceased”.
11 Subsection 50(4)
Before “debtor’s”, insert “deceased”.
12 Paragraph 50(5)(a)
Omit “a sequestration order had been made against the debtor”, substitute “an order had been made for the administration of the estate of the deceased debtor”.
13 Paragraph 50(5)(c)
Omit “debtor’s bankruptcy if a sequestration”, substitute “administration of the deceased debtor’s estate if an”.
14 At the end of section 50
Add:
In this section:
legal personal representative, in relation to a deceased debtor, means:
the executor under the deceased debtor’s will; or
the administrator under letters of administration or court order;
of the deceased debtor’s estate, or a part of that estate.
15 Subsection 73(1)
Omit “a bankrupt”, substitute “the legal personal representative of a deceased debtor”.
16 Subsection 73(1)
Omit “his or her” (wherever occurring), substitute “the deceased debtor’s”.
17 At the end of section 73
Add:
In this section:
legal personal representative, in relation to a deceased debtor, means:
the executor under the deceased debtor’s will; or
the administrator under letters of administration or court order;
of the deceased debtor’s estate, or a part of that estate.
18 Section 74
Repeal the section, substitute:
This Act’s bill:Explanatory statement
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