Bankruptcy Rules (Amendment)
Statutory Rules No. 176 of 1989
Explanatory Statement
These amendments to the Bankruptcy Rules made pursuant to subsection 315(1) of the Bankruptcy Act 1966 (the Act) will come into operation on 1 July 1989.
They increase the fees payable in respect of bankruptcy proceedings in the Federal Court and bring those fees into line with fees payable in the Court’s non-bankruptcy jurisdictions. The amendments also introduce a new fee for an application by a person to become registered and qualified to act as a trustee.
Rule 1
Rule 1 provides for these Rules to commence on 1 July 1989.
Rule 2
Rule 2 repeals Schedule 4 to the Rules and substitutes a new Schedule 4 in its place. The amount for each item in Schedule 4 is increased so that the Court fees payable in bankruptcy matters in respect of applications to the Court are the same as those payable in the Court’s non-bankruptcy jurisdictions (ie $300: see items 1, 2 and 3). There is a new fee of $300 for an application under subsection 155(2) of the Act for a person to be registered and qualified to act as a trustee. There is also a new fee of $300 which is payable in respect of all other applications to the Court, not being applications by officers for the committal to prison of persons for contempt of Court and applications by persons so committed for their release from custody. The new fee does not apply to applications for the substituted service of documents. The fees payable in respect of Items 4 to 8 inclusive have been increased to reflect the increased cost of the services.
Rule 3
Rule 3 amends Schedule 6 of the Rules to add a new fee of $2,000 which is payable to the Official Trustee by a person who is an applicant under subsection 155(2) of the Act to be registered and qualified to act as a trustee. Rule 59 of the Rules requires an Official Receiver to make such inquiries as he thinks fit into and report to the Court in connection with the application of a person to be registered and qualified to act as a trustee. This fee will recover the costs of this function which is essentially a service to the applicant[Illegible] is not uncommon for up to 20 hours of work to be [Illegible]
an Official Receiver in the performance of this function. The work involved includes interviewing the applicant to ascertain his or her knowledge of insolvency law and practice, making inquiries generally, preparing the report and attending Court on the hearing of the application.
Rule 4
Rule 4 is a transitional provision. Subrule 4(1) provides that the new fee payable for an application for the issue of a bankruptcy notice will not apply in cases where the application has been made before the commencement date of these Rules and a bankruptcy notice has not been issued before that day. Subrule 4(2) provides that the fee payable by a person making an application to be registered and qualified to act as a trustee is not payable in cases where the application has been made before the commencement date of these Rules and the Court has not directed that the person be so registered before that day.
Overview
The Bankruptcy Rules (Amendment) Statutory Rules No. 176 of 1989 were enacted to address the need for adjusting the fees associated with bankruptcy proceedings in the Federal Court to ensure they align with those in the Court's non-bankruptcy jurisdictions. This amendment was made pursuant to subsection 315(1) of the Bankruptcy Act 1966 and was enacted by the Parliament of Australia. The primary policy objective of these amendments is to streamline and standardise the fees associated with bankruptcy applications and proceedings, thereby reflecting the increased costs involved in the administration of these matters. Additionally, the rules introduce a new fee for applications to become registered and qualified to act as a trustee, which aims to cover the costs associated with the function of the Official Receiver in assessing and reporting on such applications.
Scope and Application
The Bankruptcy Rules (Amendment) Statutory Rules No. 176 of 1989, enacted under the authority of the Bankruptcy Act 1966, establish new fee structures for bankruptcy proceedings in the Federal Court, aligning them with fees in the Court's non-bankruptcy jurisdictions. These amendments, which took effect on 1 July 1989, primarily target individuals and entities engaged in bankruptcy matters, including applicants for registration and qualification as trustees. Additionally, the amendments introduce a new fee for applications related to trustee registration. Geographically, the rules apply across the Commonwealth of Australia, as they pertain to proceedings in the Federal Court. The amendments do not explicitly exclude any specific persons or entities from their scope, but they do specify that certain fees do not apply to particular types of applications, such as those for substituted service of documents or for the committal to prison of persons for contempt of Court. The rules also include transitional provisions to manage the introduction of new fees in cases where applications were made before the commencement date of these amendments.
Key Provisions
The Bankruptcy Rules (Amendment) Statutory Rules No. 176 of 1989 introduce several changes to the existing Bankruptcy Rules, primarily concerning the fees associated with bankruptcy proceedings. These amendments, which came into effect on 1 July 1989, are designed to align the fees charged for bankruptcy matters with those applicable in the Federal Court's non-bankruptcy jurisdictions. The principal changes are outlined in Rule 2, which repeals and replaces Schedule 4 of the Rules. This new Schedule 4 increases the fees for various applications to the Court, including applications to the Court for bankruptcy notices, applications for registration as a trustee, and other applications, with the notable exception of applications for the committal to prison of persons for contempt of Court and applications for their release from custody. Additionally, there is a new fee of $300 for applications not involving substituted service of documents.
Rule 3 introduces a new fee of $2,000 payable to the Official Trustee by an applicant seeking registration and qualification as a trustee. This fee is intended to cover the costs associated with the Official Receiver's inquiries and report on the applicant's suitability, a process which can involve up to 20 hours of work, including interviews, general inquiries, report preparation, and court attendance. The new fee structure aims to ensure that these services are adequately compensated and reflects the increased costs of providing such services.
The obligations imposed by these amendments include the requirement for applicants to pay the newly stipulated fees for various bankruptcy-related applications. Specifically, applicants must now pay $300 for an application to be registered and qualified as a trustee, and an additional $2,000 to the Official Trustee for the review and report process. Furthermore, Rule 4 includes transitional provisions ensuring that the new fees do not apply to applications made before the commencement date of these Rules, provided a bankruptcy notice has not been issued or the Court has not directed the person's registration before that date.
Failure to comply with the new fee requirements can lead to significant consequences. While the Explanatory Statement does not detail specific offences or penalties, the nature of the amendments implies that non-payment or underpayment of the prescribed fees could result in legal ramifications. Typically, non-compliance with court fee requirements can lead to delays in proceedings, additional administrative actions, or other judicial consequences as determined by the Court. The precise nature and extent of these consequences would be governed by the broader provisions of the Bankruptcy Act 1966 and other applicable laws.