Bankruptcy Regulations 1996
Statutory Rules No. 263, 1996
made under the
Bankruptcy Act 1966
Compilation No. 31
Compilation date: 1 January 2021
Includes amendments up to: F2020L01652
Registered: 11 February 2021
About this compilation
This compilation
This is a compilation of the Bankruptcy Regulations 1996 that shows the text of the law as amended and in force on 1 January 2021 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1—Preliminary
1.01 Name of Regulations
1.03 Interpretation
1.04 Application of Criminal Code
Part 2—Administration
2.01 Section 20J of the Act—prescribed rate of interest on moneys in Common Fund
2.05 Disclosure of information by the Inspector‑General
Part 3—Courts
3.01 Paragraph 29(5)(b) of the Act—prescribed countries
Part 4—Proceedings in connexion with bankruptcy
Division 1—Bankruptcy notices
4.01 Application for bankruptcy notice
4.02 Form of bankruptcy notices
4.02AA Prescribed statutory minimum
4.02A Service of bankruptcy notices
4.03 Inspection of bankruptcy notices
4.04 Judgment or order in foreign currency
Division 2—Petitions
4.05 Copy of petition, etc to be given to Official Receiver
4.06 Control of debtor’s property before sequestration
4.07 Expenses of trustee before sequestration
4.08 Application for damages where petition dismissed
4.09 Subsection 50(5) of the Act—prescribed modifications of applied provisions
4.10 Acceptance of debtor’s declaration
4.11 Prescribed information to be supplied by Official Receiver to debtor
4.12 Debtor’s petition—filing of trustee’s consent
4.13 Notice to partners of referral to Court of petition by other partners against the partnership
Part 5—Control over person and property of debtors and bankrupts
5.01 Where debtor or bankrupt is arrested
5.02 Fee for making request for consent to leave…
Overview
The Bankruptcy Regulations 1996 were enacted to provide supplementary rules and procedures for the administration of bankruptcy in Australia under the Bankruptcy Act 1966. These regulations were created by the Parliament of Australia to address procedural and administrative gaps within the primary legislation, ensuring the effective and consistent application of the Act. The regulations cover a wide range of topics, from the issuance and service of bankruptcy notices, to the administration of estates, including those of deceased persons, and the operation of the National Personal Insolvency Index. They were designed to support the objectives of the Bankruptcy Act 1966, which include the fair and efficient administration of bankrupt estates, the protection of creditors' interests, and the provision of mechanisms for the rehabilitation of insolvent individuals. The regulations are instrumental in detailing the practical aspects of bankruptcy proceedings, such as the forms and methods for various notifications, the order of payments to creditors, and the process for dealing with undervalued transactions and exemptions. Furthermore, they include provisions for the handling of infringement notices, offences, and penalties, thereby establishing a comprehensive regulatory framework that complements the overarching legislative intent of the Bankruptcy Act.
Scope and Application
The Bankruptcy Regulations 1996, made under the Bankruptcy Act 1966, provide detailed rules for the administration of bankruptcy proceedings in Australia, including the establishment and maintenance of the National Personal Insolvency Index, procedures for lodging bankruptcy notices, and the order of payment of debts. These regulations apply to the Commonwealth of Australia and govern the conduct and transactions related to bankruptcies and the administration of bankrupt estates. The regulations cover various entities, such as debtors, bankrupts, trustees, and creditors, and outline their roles and obligations, including the procedures for appointing and removing trustees, and the information to be supplied to debtors and creditors. The regulations also specify prescribed amounts for certain types of property, including household and transport property, and modifications to the definition of income for bankrupts. Additionally, they detail the process for the distribution of property, the issuance of infringement notices, and the payment of charges and penalties. Certain exclusions and thresholds are defined, such as the statutory minimum for bankruptcy notices and the prescribed amount for overpayments to be refunded or offset. The regulations are supplemented by subordinate instruments, which may modify or extend their application.
Key Provisions
- The Bankruptcy Regulations 1996, as amended, establish the operational framework and procedures for various aspects of bankruptcy under the Bankruptcy Act 1966. They outline key provisions such as the prescribed rate of interest on moneys in the Common Fund (r 2.01), the statutory minimum amount for bankruptcy notices (r 4.02AA), and the prescribed countries relevant for certain bankruptcy proceedings (r 3.01). These regulations also define the process for the administration of property, including the order of payment of debts (r 6.01), the classification of household and personal property that is exempt from being divided among creditors (rr 6.03 and 6.03A), and the conditions under which transfers of property may be exempt from being voided against a trustee (r 6.09).
- Parties or entities governed by these regulations, such as creditors, trustees, and the Official Trustee, must adhere to specific obligations. For instance, creditors must lodge applications for bankruptcy notices with the Official Receiver and provide certain documents (r 4.01). Trustees are required to give prescribed information to debtors and ensure compliance with statutory requirements before administering a debtor's property (rr 4.11, 4.12, 4.13). Additionally, trustees must follow specific protocols for the realisation and distribution of property, including the disclaimer of onerous property and the declaration of dividends (rr 6.10, 6.21, 6.22). The regulations also mandate the reporting and informational duties of trustees, such as informing the Official Receiver of a bankrupt's return to Australia or the cancellation of objections to discharge (rr 7.01, 7.02).
- The regulations impose various penalties and consequences for breaches. For example, failure to provide complete and accurate information regarding bankruptcy proceedings can lead to strict liability offences (rr 7.01A, 8.50, 8.55). Similarly, trustees have specific obligations to notify the Official Receiver of events such as the termination of a personal insolvency agreement or the finalisation of an estate's administration, with strict liability offences applying for non-compliance (rr 10.12, 10.14). Infringement notices are provided as an alternative to prosecution for certain offences, with specified penalties and processes for issuance, payment, and withdrawal (rr 14.01 to 14.15). Non-compliance with these provisions can lead to financial penalties, court proceedings, and potential criminal charges, with penalties ranging from 1 to 10 penalty units, depending on the specific offence.
- Area of Law
- Insolvency Law
- Instrument
- Regulation
- Concepts
- Definitions & Interpretation
- Commencement Provisions
- Regulatory Standards
- Licensing & Registration
- Offence Provisions
- Enforcement Powers
- Compliance Obligations
