Bankruptcy Amendment Act 1993
No. 11 of 1993
An Act to amend the Bankruptcy Act 1966
[Assented to 31 May 1993]
The Parliament of Australia enacts:
Short title etc.
1.(1) This Act may be cited as the Bankruptcy Amendment Act 1993.
(2) In this Act, “Principal Act” means the Bankruptcy Act 19661.
Commencement
2. This Act commences on the day on which it receives the Royal Assent.
Payment of contribution
3. Section 139ZG of the Principal Act is amended by omitting subsections (3), (4) and (5) and substituting the following subsections:
“(3) The total of any contributions or instalments that are not paid by the bankrupt is recoverable by the trustee as a debt due to the estate of the bankrupt.
“(4) The trustee may, in connection with proceedings to recover the debt:
(a) sign a certificate setting out the nature and the amount of the debt; and
(b) file the certificate in the court in which the proceedings have been instituted.
“(5) In such proceedings, the certificate is prima facie evidence of the existence of the debt and the amount of the debt.”.
NOTE
1. No. 33, 1966, as amended. For previous amendments, see No. 121, 1968; No. 40, 1969; No. 122, 1970; No. 216, 1973; No. 56, 1975; Nos. 37, 91 and 161, 1976; No. 111, 1977; No. 155, 1979; Nos. 12 and 70, 1980; Nos. 74 and 176, 1981; No. 18, 1983; Nos. 10 and 63, 1984; Nos. 21 and 193, 1985; Nos. 154 and 168, 1986; Nos. 73 and 119, 1987; Nos. 8, 38 and 99, 1988; No. 129, 1989; No. 115, 1990; and Nos. 9, 81, 143 and 210, 1992.
[Minister’s second reading speech made in—
House of Representatives on 5 May 1993
Senate on 12 May 1993]
Overview
The Bankruptcy Amendment Act 1993 was enacted by the Parliament of Australia to amend the Bankruptcy Act 1966. This legislation responds to the need for clearer processes in the recovery of unpaid contributions or instalments by trustees on behalf of bankrupt estates. The Act's primary objective is to ensure that any contributions or instalments not paid by the bankrupt are recoverable as a debt due to the estate, providing trustees with the authority to sign and file certificates as evidence in legal proceedings. By doing so, the Act aims to strengthen the enforcement mechanisms available to trustees, thereby improving the administration of bankrupt estates and ensuring more effective use of available resources.
Scope and Application
The Bankruptcy Amendment Act 1993 is an Act of the Parliament of Australia that amends the Bankruptcy Act 1966. It applies to all bankrupts, trustees, and other persons and entities involved in the administration of bankruptcy proceedings under the Principal Act. The Act's provisions extend across the Commonwealth of Australia, impacting all jurisdictions uniformly. The Act primarily modifies the payment of contributions by bankrupts, clarifying that any unpaid contributions or instalments are recoverable as a debt by the trustee. This includes the right of the trustee to sign and file a certificate in court, which serves as prima facie evidence of the debt in any related proceedings. The Act does not explicitly state any exclusions or thresholds but operates within the existing framework of the Principal Act, which may impose certain conditions or limitations. The scope of the Act may be further defined or extended through subordinate instruments, although the primary text does not detail any such extensions or restrictions.
Key Provisions
The Bankruptcy Amendment Act 1993 (Act) amends the Bankruptcy Act 1966 (Principal Act) primarily concerning the recovery of unpaid contributions by bankrupts. Section 3 of the Act revises section 139ZG of the Principal Act by omitting subsections (3), (4), and (5) and substituting them with new provisions. Specifically, subsection (3) clarifies that any unpaid contributions or instalments by a bankrupt are recoverable by the trustee as a debt due to the estate of the bankrupt. Subsection (4) grants the trustee the authority to sign a certificate detailing the nature and amount of the debt and file it in the court where the proceedings have been initiated. Lastly, subsection (5) establishes that, in such proceedings, the certificate is considered prima facie evidence of the existence and amount of the debt.
Under this Act, trustees of bankrupt estates are required to take certain actions to recover unpaid contributions. They must ensure that any unpaid contributions or instalments are pursued as debts due to the bankrupt’s estate. This involves signing a certificate that specifies the nature and amount of the debt and subsequently filing this certificate in the relevant court. These actions are crucial for the effective administration of the bankrupt’s estate and to ensure that creditors receive what is owed to them.
Failure to comply with the provisions of the Act can result in legal consequences for the parties involved. For instance, if a trustee does not take the necessary steps to recover unpaid contributions as stipulated in section 3, this could potentially lead to legal challenges regarding the administration of the estate. Although the Act does not explicitly state penalties for non-compliance, breaches of trustee duties under the Principal Act can lead to civil and criminal penalties, including fines and imprisonment. The exact penalties would be determined by the courts based on the specific circumstances of the breach.