Bankruptcy Rules (Amendment) 1993 No. 90
EXPLANATORY STATEMENT
Statutory Rules 1993 No. 90
Issued by the authority of the Minister for Justice
Bankruptcy Act 1966
Bankruptcy Rules (Amendment)
The Bankruptcy Rules (Amendment) made amendments to the Bankruptcy Rules in relation to remuneration of the Official Trustee in Bankruptcy and solicitors.
Details of rules
Rule 1 - Commencement
Rule 1 provided that these rules commenced on 1 June 1993.
Rule 2 - Amendment
Rule 2 provided that the Bankruptcy Rules (the Rules) have been amended as set out in these rules.
Rule 3 - Rule 162 (Scale of costs)
Rule 162 of the Rules prescribes for solicitors' costs in bankruptcy proceedings and bankruptcy related matters. Subrule 162(1) provides that in all proceedings solicitors are entitled to charge and be allowed costs as specified in Schedule 3. Subrules 162(2) and (2A) enable solicitors to furnish a lump sum, rather than an itemised account, in respect of certain proceedings.
Rule 3 added new subrule 1.62(2B) to increase costs specified in rule 162 and Schedule 3, incurred on or after the commencement of this new subrule, by 2.92%.
Rule 4 - Rule 182 (Fees and percentages payable to the Official Trustee)
Rule 182 fixes the fees and percentages payable to the Official Trustee as remuneration. Subrule 182(2) prescribes fees payable to the Official Trustee on a scale based on the "prescribed amount" in respect of an estate or a debtor. Subrule 182(4) defines a "prescribed amount" for the purposes of subrule 182(2). Fees payable to the Official Trustee are fixed where the "prescribed amount" of the estate or the debtor does not exceed $1000, exceeds $1000 but not $20,000, exceeds $20, 000 but not $40 000 or is in excess of $40, 000, as prescribed respectively in paragraphs 182(2)(d), (e), (f) and (g).
Rule 4 amended subrule 182(2) to omit paragraphs 182(2)(e), (f) and (g) and substituted new paragraphs 182(2)(e) and (f), to simplify the present scale by reducing the points on the current scale from four to three. Thus, under subrule 182(2)(d) the Official Trustee is entitled to receive a fee of $1000, where the "prescribed amount" of the estate or the debtor does not exceed $1000. Under new paragraph 182(2)(e) where the "prescribed amount" exceeds $1000 but does not exceed $50,000, the Official Trustee is entitled to receive a fee equal to the sum of $1000 and an amount equal to 15% of the amount by which the prescribed amount exceeds $1000. New paragraph 182(2)(f) prescribes that where the "prescribed amount" in respect of the estate or debtor exceeds $50 000, the Official Trustee is entitled to receive a fee equal to the sum of $8,350 and an amount equal to 10% of the amount by which the prescribed amount exceeds $50,000.
Rule 5 - Schedule 6 (Official Trustee's fees)
Subrule 5.1 corrected an erroneous reference to the prescribing rule in the heading of Schedule 6 by the omission of the words "Subrule 182(1A)" and the substitution of the words "Subrule 182(1)".
The fees specified in Schedule 6 as payable to the Official Trustee in respect of the taking of an inventory of property at item 1 and for giving notices of matters, such as meetings of creditors and Court sittings, specified at item 4 were increased. As such, subrules 5.2, 5.3 and 5.4 substituted the new fees at column 3 of item 1 and paragraphs (c) and (d) of item 4.
Overview
The Bankruptcy Rules (Amendment) 1993 No. 90 was enacted to amend the Bankruptcy Rules in relation to the remuneration of the Official Trustee in Bankruptcy and solicitors. This amendment was issued by the authority of the Minister for Justice under the Bankruptcy Act 1966. The explanatory statement for these amendments highlights the need to adjust the fees and costs associated with the administration of bankruptcy proceedings to reflect economic changes and maintain the efficiency of the system. Specifically, the amendments introduced a new subrule to increase costs charged by solicitors by 2.92% and revised the fee structure for the Official Trustee to simplify and adjust the remuneration scale. These changes aimed to provide a more streamlined and updated framework for the remuneration of those involved in bankruptcy proceedings.
Scope and Application
The Bankruptcy Rules (Amendment) 1993 No. 90 applies to the remuneration of the Official Trustee in Bankruptcy and solicitors involved in bankruptcy proceedings and bankruptcy-related matters. The amendments impact the fees and percentages payable to the Official Trustee as well as the costs charged by solicitors. These rules are applicable nationwide in Australia as they pertain to the Bankruptcy Act 1966, which has a Commonwealth reach. The amendments do not specify any exclusions or exemptions and are intended to update the remuneration structures for the parties involved in bankruptcy proceedings. The amendments are effective from the date of commencement, 1 June 1993, and include specific adjustments to the scales of fees and percentages payable, as well as the costs charged by solicitors. The scope of the amendments is confined to the adjustments detailed in the rules and does not extend to other areas of bankruptcy law unless further amendments are made through subordinate instruments.
Key Provisions
The Bankruptcy Rules (Amendment) 1993 No. 90 introduces several amendments to the Bankruptcy Rules, primarily concerning the remuneration of the Official Trustee in Bankruptcy and solicitors. The rules came into effect on 1 June 1993 (Rule 1). The key amendments include changes to the scale of costs for solicitors (Rule 3) and the fees and percentages payable to the Official Trustee (Rule 4). Additionally, there were corrections and fee increases specified in Schedule 6 (Rule 5).
These amendments impose specific obligations on the parties involved. For solicitors, the changes in Rule 3 mandate that they may charge and be allowed costs as specified in Schedule 3, with a new subrule 162(2B) that increases these costs by 2.92% for costs incurred after the commencement of these rules (Rule 3). The Official Trustee's fees are now governed by a simplified scale (Rule 4), where the fees depend on the "prescribed amount" of the estate or the debtor. For amounts not exceeding $1000, the fee is $1000. For amounts exceeding $1000 but not exceeding $50,000, the fee is $1000 plus 15% of the amount by which the prescribed amount exceeds $1000. For amounts exceeding $50,000, the fee is $8,350 plus 10% of the amount by which the prescribed amount exceeds $50,000.
Failure to comply with these amended rules may result in various consequences. While the Explanatory Statement does not explicitly outline specific offences or penalties for breach, non-compliance with statutory rules and regulations generally can lead to administrative, civil, or criminal penalties depending on the nature and severity of the breach. These consequences can range from fines to more severe legal actions, depending on the jurisdiction and the specific provisions of the applicable laws. However, the specific penalties for these particular amendments are not detailed in the provided text.