Bankruptcy Amendment Act 1997
No. 11, 1997
An Act to amend the law relating to bankruptcy, and for related purposes
Contents
1 Short title..................................1
2 Commencement..............................1
3 Schedule(s).................................2
Schedule 1—Amendment of the Bankruptcy Act 1966 3
Schedule 2—Amendment of the Bankruptcy Legislation Amendment Act 1996 12
Schedule 3—Transitional provisions relating to amendment of the Bankruptcy Act 1966 13
Bankruptcy Amendment Act 1997
No. 11, 1997
An Act to amend the law relating to bankruptcy, and for related purposes
[Assented to 13 March 1997]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Bankruptcy Amendment Act 1997.
2 Commencement
(1) Subject to subsections (2), (3) and (4), this Act commences on the day on which it receives the Royal Assent.
(2) Subject to subsection (3), Schedules 1 and 3 commence on the commencement of the Bankruptcy (Estate Charges) Act 1997.
(3) If the Bankruptcy (Estate Charges) Act 1997 commences on the same day as Schedules 1 and 2 to the Bankruptcy Legislation Amendment Act 1996, Schedule 1 to this Act commences on that day immediately after those Schedules to the Bankruptcy Legislation Amendment Act 1996 have commenced.
Note: This means that the amendments of the Bankruptcy Act 1966 in Schedule 1 to this Act have effect as amendments of that Act as amended by Schedules 1 and 2 to the Bankruptcy Legislation Amendment Act 1996.
(4) Schedule 2 commences, or is taken to have commenced, immediately after the Bankruptcy Legislation Amendment Act 1996 receives or received the Royal Assent.
3 Schedule(s)
Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Amendment of the Bankruptcy Act 1966
1 At the end of paragraphs 20D(1)(a) and (b)
Add “or”.
2 At the end of subsection 20D(1)
Add:
; or (e) in bank bills accepted or endorsed by an approved bank.
3 Paragraph 154A(3)(b)
Repeal the paragraph, substitute:
(b) the charge imposed by section 4 of the Bankruptcy (Registration Charges) Act 1997.
4 At the end of section 154A
Add:
(4) The application is properly made if subsections (2) and (3) are complied with.
5 Subsection 155(1)
Omit “an application”, substitute “a properly made application”.
6 Paragraph 155C(1)(b)
Repeal the paragraph, substitute:
(b) the applicant has paid the charge imposed by section 5 of the Bankruptcy (Registration Charges) Act 1997.
7 Paragraph 155D(b)
Repeal the paragraph, substitute:
(b) the person has paid the charge imposed by section 6 of the Bankruptcy (Registration Charges) Act 1997.
8 Paragraph 155E(3)(b)
Repeal the paragraph, substitute:
(b) the charge imposed by section 7 of the Bankruptcy (Registration Charges) Act 1997.
9 After subsection 155E(3)
Insert:
(3A) The application is properly made if subsections (2) and (3) are complied…
Overview
The Bankruptcy Amendment Act 1997 was enacted by the Parliament of Australia to amend the law relating to bankruptcy and address specific issues within the existing framework. This Act serves to refine the administration of bankruptcy proceedings, particularly focusing on the charges and procedures associated with the management of bankrupt estates. The primary objective of the Act is to introduce clarity and efficiency in the application of charges and the handling of trustee accounts, ensuring that the administration of bankruptcy remains fair, transparent, and effective. Through amendments to the Bankruptcy Act 1966 and other related provisions, the Act aims to enhance the overall management of bankruptcy cases by clarifying the roles and responsibilities of trustees, the imposition and management of charges, and the procedures for payment and remission of these charges. The Act also introduces new mechanisms for the deferral, extension, and remission of charges to accommodate the practicalities of estate administration while maintaining the integrity of the bankruptcy system.
Scope and Application
The Bankruptcy Amendment Act 1997 amends the Bankruptcy Act 1966 and the Bankruptcy Legislation Amendment Act 1996, with provisions that apply to trustees of bankrupt estates, creditors, and the Official Trustee. This Act is of Commonwealth jurisdiction, impacting the entire country. It introduces new provisions relating to estate charges, including interest charges and realisations charges, and modifies existing provisions to incorporate these changes. Certain sections of the Act commence on the Royal Assent date, while others have specific commencement dates linked to other related legislation. Notably, the Act does not specify exclusions or exemptions, though it does detail various charges and penalties applicable to trustees and other involved parties. The application and interpretation of this Act may be further refined through subordinate instruments, such as regulations and rules, which can address additional matters like payment methods and recovery processes.
Key Provisions
- The Bankruptcy Amendment Act 1997 (C2004A05112) primarily amends the Bankruptcy Act 1966, introducing several changes that aim to refine the processes and responsibilities involved in bankruptcy proceedings. In particular, sections 20D(1)(a) and (b) are extended to include bank bills accepted or endorsed by an approved bank (Schedule 1, item 2). Furthermore, the charge for registering a bankruptcy is modified to reflect the charge imposed by section 4 of the Bankruptcy (Registration Charges) Act 1997 (Schedule 1, item 3). The act also stipulates that an application for bankruptcy is considered properly made if it complies with subsections (2) and (3) (Schedule 1, item 4). It introduces a requirement that the applicant must have paid the charge imposed by section 5 of the Bankruptcy (Registration Charges) Act 1997 (Schedule 1, item 6).
- The Act imposes various obligations on parties involved in bankruptcy proceedings. Trustees of bankrupt estates are required to deposit all money received on account of the estate into a single interest-bearing bank account that meets regulatory specifications (Schedule 1, item 13). Trustees must also issue receipts for payments into the estate and, wherever practicable, obtain receipts for payments made out of the estate (Schedule 1, items 16 and 17). The Act further mandates that the Official Trustee must be paid prescribed remuneration for work related to the estate of a bankrupt or any other work under the Act (Schedule 1, item 12).
- There are also penalties and consequences for non-compliance. Failure to comply with certain requirements may incur a penalty of 5 penalty units (Schedule 1, item 16). Additionally, if an interest charge or realisations charge remains unpaid after the due date, the liable person must pay a late payment penalty of 20% per year on the unpaid amount (Schedule 1, item 281). The Inspector-General has the authority to remit charges or penalties in cases where non-remittance would cause hardship and is deemed appropriate (Schedule 1, item 283). These provisions ensure that the obligations of parties involved in bankruptcy proceedings are clearly defined and enforced, with financial consequences for non-compliance.
- Area of Law
- Insolvency Law
- Instrument
- Act
- Concepts
- Commencement Provisions
- Regulatory Standards
- Enforcement Powers
- Transitional Provisions