Bankruptcy Legislation Amendment Act 2002
Act No. 131 of 2002 as amended
This compilation was prepared on 28 June 2004
[This Act was amended by Act No. 80 of 2004]
Amendments from Act No. 80 of 2004
[Schedule 7 (items 1 and 2) amended Schedule 1 (item 198)
Schedule 7 (items 1 and 2) commenced on 5 May 2003]
Prepared by the Office of Legislative Drafting,
Attorney‑General’s Department, Canberra
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendments
Part 1—Amendments
Bankruptcy Act 1966
Part 2—Transitional provisions
An Act to amend the Bankruptcy Act 1966, and for related purposes
[Assented to 18 December 2002]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Bankruptcy Legislation Amendment Act 2002.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, on the day or at the time specified in column 2 of the table.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day on which this Act receives the Royal Assent | 18 December 2002 |
2. Schedule 1 | A single day to be fixed by Proclamation, subject to subsection (3) | 5 May 2003
(s 2(1); Gazette 2003, S138) |
Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table is for additional information that is not part of this Act. This information may be included in any published version of this Act.
(3) If a provision covered by item 2 of the table does not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Part 1—Amendments
Bankruptcy Act 1966
1 Subsection 5(1)
Insert:
administrator, in relation to a debt agreement, means the person:
(a) authorised by the agreement to deal with property under the agreement; or
(b) appointed by the Inspector‑General under section 185ZB; or
(c) appointed by an Official Receiver under section 185ZC.
2 Subsection 5(1)
Insert:
authorised employee means an APS employee whose duties include either or both of the following:
(a) supporting the Inspector‑General in the performance of his or her functions, or in the exercise of his or her powers, under this Act;
(b) supporting the Official Receivers in the performance of their functions, or in the exercise of their powers,…
Overview
The Bankruptcy Legislation Amendment Act 2002 was enacted to address various gaps and issues in the existing bankruptcy laws. The Act, assented to on 18 December 2002 by the Parliament of Australia, introduced a series of amendments to the Bankruptcy Act 1966. The policy objective of this legislation is to enhance the efficiency and fairness of the bankruptcy process, ensuring that it serves the best interests of all stakeholders, including creditors, debtors, and the broader public. The amendments cover a wide range of provisions, including the roles and responsibilities of various officials, the process for handling bankruptcy petitions and notices, the management of bankrupt estates, and the procedures for reviewing and varying agreements and arrangements between debtors and creditors. The Act also introduced measures to streamline the process of replacing trustees and managing debt agreements, aiming to reduce administrative burdens and improve the effectiveness of the bankruptcy system.
Scope and Application
The Bankruptcy Legislation Amendment Act 2002 (Cth) amends the Bankruptcy Act 1966 (Cth) by introducing a series of changes to the administration and enforcement of bankruptcy laws in Australia. The Act applies to individuals and entities who are subject to bankruptcy proceedings, including debtors, creditors, trustees, and administrators. The legislative changes are applicable nationally, as the Act is a Commonwealth legislation. The Act does not explicitly state any exclusions or thresholds, but its provisions are designed to streamline the process of bankruptcy, improve the efficiency of estate administration, and strengthen the rights of creditors. The Act also empowers the use of subordinate instruments to further extend or restrict its application, although specific details are not provided within the text of the Act itself.
Key Provisions
- The Bankruptcy Legislation Amendment Act 2002 amends the Bankruptcy Act 1966 (the "Act") to introduce a number of changes to the administration of bankruptcy and the rights and obligations of bankrupts and their creditors. Firstly, the Act introduces a new category of authorised employee, defined in section 5, who may perform functions under the Act. Secondly, the Act makes changes to the definitions of "debtor's petition" and "offence against this Act" in section 5. Thirdly, the Act modifies the functions of the Inspector-General and Official Receiver, allowing for the appointment of acting officials, in section 17. Fourthly, the Act allows the Inspector-General to investigate the conduct of administrators of debt agreements, in section 12.
- The Act imposes obligations on various parties. The Official Receiver must reject a debtor's petition if the debtor was not present or ordinarily resident in Australia, carrying on business in Australia, or a member of a firm or partnership carrying on business in Australia at the time the petition was presented, as set out in section 55(2A). The Official Receiver may reject a debtor's petition if the debtor is likely to be able to pay their debts and either is unwilling to pay a creditor or has previously been bankrupt at least three times or once within the last five years, as set out in section 55(3AA). A bankrupt must inform the trustee of any material changes to their statement of affairs, as set out in section 77(bb) and (bc). The trustee must consider the convenience of creditors when convening a meeting and must provide a detailed statement of the likely impact of their remuneration on creditor dividends, as set out in sections 64(3) and 64U(5A).
- The Act provides for various civil and criminal consequences for breaches. An unauthorised person who knowingly makes a false statement in a document submitted under the Act commits an offence and is liable to a penalty of 5 penalty units, as set out in section 272. An unauthorised person who knowingly makes a false statement in a document submitted under the Act commits an offence and is liable to imprisonment for a term not exceeding 1 year, as set out in section 282. The maximum penalty for an offence under section 272 is 5 penalty units, and the maximum penalty for an offence under section 282 is imprisonment for a term not exceeding 1 year.
- Area of Law
- Insolvency Law
- Bankruptcy Law
- Instrument
- Act
- Concepts
- Commencement Provisions
- Repeal & Amendment
- Transitional Provisions
- Offence Provisions
- Civil Penalty Provisions
- Licensing & Registration
- Regulatory Standards
