Bankruptcy Act 1966
Sections and provisions with full text and the judgments that cite each one.
Section 103 — Debts to be rounded down to nearest dollar
If the amount of a debt includes cents, the cents must be disregarded in admitting proof of the debt.
Section 104 — Appeal against decision of trustee in respect of proof
(1) A creditor, or the bankrupt, may apply to the Court for review of a decision of the trustee under subsection 102(1), (3) or (4) in respect of a proof of debt. (2) The Court may, upon the…
Section 105 — Costs of appeal
(1) The Official Trustee is not personally liable for costs in relation to an application to review a decision made by the Official Trustee under subsection 102(1), (3) or (4) in respect of a proof…
Section 106 — Trustee may administer oaths etc.
(1) A trustee may, for the purpose of carrying out his or her duties under this Division, administer oaths and take affirmations and affidavits, but is not entitled to charge a fee in respect of such…
Section 107 — Creditor not to receive more than the amount of his or her debt and interest
Subject to the operation of the provisions of section 91, a creditor is not entitled to receive, in respect of a provable debt, more than the amount of the debt and any interest payable to him or her…
Section 108 — Debts proved to rank equally except as otherwise provided
Except as otherwise provided by this Act, all debts proved in a bankruptcy rank equally and, if the proceeds of the property of the bankrupt are insufficient to meet them in full, they shall be paid…
Section 109 — Priority payments
(1) Subject to this Act, the trustee must, before applying the proceeds of the property of the bankrupt in making any other payments, apply those proceeds in the following order: (a) first, in the…
Section 109A — Debts due to employees
(1) Where a contract of employment with a bankrupt was subsisting immediately before the date of the bankruptcy, the employee under the contract is, whether or not the employee is a person referred…
Section 110 — Application of estates of joint debtors
(1) In the case of joint debtors, whether partners or not, the joint estate shall be applied in the first instance in payment of their joint debts, and the separate estate of each joint debtor shall…
Section 113 — Apprenticeship etc. claims
(1) Where, at the time of the presentation of a petition on which, or by virtue of the presentation of which, a person became a bankrupt, a person was apprenticed, or was an articled clerk, to the…
Section 114 — Payment of liabilities etc. incurred under terminated deed etc.
(1) Where a debtor becomes a bankrupt after a personal insolvency agreement executed by him or her, or a composition or scheme of arrangement accepted by his or her creditors, has, whether before or…
Section 114A — The effect of proceeds of crime orders
(1) If property of a bankrupt is covered by a restraining order, or a forfeiture order, made on or after the date of the bankruptcy, proceeds of property that is covered by the order must not be…
Section 114B — The effect of applications for proceeds of crime orders
(1) If: (a) an application is made under a proceeds of crime law for a restraining order or a forfeiture order; and (b) if the order were made, it would cover property of a bankrupt (whether the…
Section 114C — Director of Public Prosecutions or Commissioner of the Australian Federal Police must notify the trustee of certain matters
If circumstances arise as a result of which: (a) this Subdivision prevents Subdivision A from being applied to the proceeds of property of a bankrupt; or (b) this Subdivision no longer prevents…
Section 115 — Commencement of bankruptcy
(1) If a person becomes a bankrupt on a creditor’s petition and subsection (1A) does not apply, then the bankruptcy is taken to have relation back to, and to have commenced at, the time of the…
Section 116 — Property divisible among creditors
(1) Subject to this Act: (a) all property that belonged to, or was vested in, a bankrupt at the commencement of the bankruptcy, or has been acquired or is acquired by him or her, or has devolved or…
Section 117 — Policies of insurance against liabilities to third parties
(1) Where: (a) a bankrupt is or was insured under a contract of insurance against liabilities to third parties; and (b) a liability against which he or she is or was so insured has been incurred…
Section 118 — Execution by creditor against property of debtor who becomes a bankrupt etc.
(1) Subject to subsection (2), where: (a) a creditor has, within 6 months before the presentation of a petition, or after the presentation of a petition, against a debtor: (i) received moneys as a…
Section 119 — Duties of sheriff after receiving notice of presentation of petition etc.
(1) Subject to this section, where notice in writing of the presentation of a creditor’s petition against a debtor is given to a sheriff, the sheriff: (a) shall refrain: (i) from taking any action to…
Section 119A — Duties of sheriff after receiving notice of bankruptcy etc.
(1) Where a debtor has become a bankrupt (whether on a creditor’s petition or otherwise and whether before or after the commencement of this section), the trustee may give to the sheriff or to the…
Section 120 — Undervalued transactions
Transfers that are void against trustee (1) A transfer of property by a person who later becomes a bankrupt (the transferor) to another person (the transferee) is void against the trustee in the…
Section 121 — Transfers to defeat creditors
Transfers that are void (1) A transfer of property by a person who later becomes a bankrupt (the transferor) to another person (the transferee) is void against the trustee in the transferor’s…
Section 121A — Transactions where consideration given to a third party
(1) This section applies if: (a) a person who later becomes a bankrupt (the transferor) transfers property to another person (the transferee); and (b) the transferee gives some or all of the…
Section 122 — Avoidance of preferences
(1) A transfer of property by a person who is insolvent (the debtor) in favour of a creditor is void against the trustee in the debtor’s bankruptcy if the transfer: (a) had the effect of giving the…
Section 123 — Protection of certain transfers of property against relation back etc.
(1) Subject to sections 118 to 122 (inclusive) and sections 128B and 128C, nothing in this Act invalidates, in any case where a debtor becomes a bankrupt: (a) a payment by the debtor to any of his or…
Section 124 — Protection of certain payments to bankrupt etc.
(1) Notwithstanding anything contained in this Act, a payment of money or delivery of property (including a security or a negotiable instrument) to, or in accordance with the order or direction of, a…
Section 125 — Certain accounts of undischarged bankrupt
(1) Where a prescribed organization has ascertained that a person having an account with it is an undischarged bankrupt, then, unless the prescribed organization is satisfied that the account is on…
Section 126 — Dealings with undischarged bankrupt in respect of after-acquired property
(1) A transaction by a bankrupt with a person dealing with him or her in good faith and for valuable consideration in respect of property acquired by the bankrupt on or after the day on which he or…
Section 127 — Limitation of time for making claims by trustee etc.
(1) After the expiration of 20 years from the date on which a person became a bankrupt, a claim shall not be made by the trustee in the bankruptcy to any property of the bankrupt, and that property…
Section 128 — Notice to trustee where identity of vendor etc. with bankrupt in doubt
(1) Where a doubt arises as to the identity with a bankrupt of a person appearing in the title to any property, an intending or actual vendor, mortgagor or lessor of the property or applicant to…
Section 128A — Simplified outline
The following is a simplified outline of this Subdivision: • This Subdivision enables the recovery of superannuation contributions made to defeat the bankrupt’s creditors. • There are 2 types of…
Section 128B — Superannuation contributions made to defeat creditors—contributor is a person who later becomes a bankrupt
Transfers that are void (1) A transfer of property by a person who later becomes a bankrupt (the transferor) to another person (the transferee) is void against the trustee in the transferor’s…
Section 128C — Superannuation contributions made to defeat creditors—contributor is a third party
Transfers that are void (1) If: (a) a person (the transferor) transfers property to another person, (the transferee); and (b) the transfer is by way of a contribution to an eligible superannuation…
Section 128D — Time for making claims by trustee
(1) An action under section 128B or 128C with respect to a transaction may be commenced by the trustee of a bankrupt’s estate at any time. (2) A section 139ZQ notice in relation to a transaction…
Section 128E — Superannuation account-freezing notice
Scope (1) This section applies in relation to a member of an eligible superannuation plan if the Official Receiver has reasonable grounds to believe that: (a) a transaction is void against the…
Section 128F — Revocation of superannuation account-freezing notice
Revocation of freezing notice by Official Receiver (1) If a superannuation account-freezing notice is in force in relation to a member of an eligible superannuation plan, the Official Receiver may,…
Section 128G — Copy of superannuation account-freezing notice to be given to trustee etc.
(1) If the Official Receiver gives or revokes a superannuation account-freezing notice that relates to a member of an eligible superannuation plan: (a) the Official Receiver must give 2 copies of the…
Section 128H — Consent of Official Receiver to the cashing etc. of a superannuation interest
Scope (1) This section applies if a superannuation account-freezing notice is in force in relation to a member’s superannuation interest. Consent (2) The member may apply in writing to the Official…
Section 128J — Power of Court to set aside superannuation account-freezing notice
(1) If the Court, on application by: (a) a person to whom a superannuation account-freezing notice has been given; or (b) the member whose superannuation interest is affected by a superannuation…
Section 128K — Judicial enforcement of superannuation account-freezing notices
(1) If the Court is satisfied that the trustee of an eligible superannuation plan has breached, or is proposing to breach, a superannuation account-freezing notice, the Court may, on application of…
Section 128L — Protection of trustee of eligible superannuation plan
(1) No criminal or civil proceedings lie against the trustee of an eligible superannuation plan because of anything done (or not done) by the trustee in good faith: (a) in compliance with a…
Section 128M — References to a member of an eligible superannuation plan
References in a provision of this Subdivision to: (a) a member of an eligible superannuation plan; and (b) a bankrupt; do not imply that the bankrupt may not be the member.
Section 128N — Definitions
In this Subdivision: approved deposit fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993. cashed, in relation to a superannuation interest, includes applied towards…
Section 129 — Trustee to take possession of property of bankrupt
(1) The trustee shall forthwith take possession of all the property of the bankrupt capable of manual delivery, including all deeds, books and documents of the bankrupt. (2) The Court may, on the…
Section 129A — Eligible judges
(1) A judge of the Court may, by writing, consent to be declared by the Minister under subsection (2). (2) The Minister may, by writing, declare a judge of the Court whose consent is in force under…
Section 129AA — Time limit for realising property
(1) This section applies only to: (a) property (other than cash) that was disclosed in the bankrupt’s statement of affairs; and (b) after-acquired property (other than cash) that the bankrupt…
Section 130 — Warrant for seizure of property connected with the bankrupt
(1) The trustee of a bankrupt’s estate may apply to an eligible judge for the issue of a warrant under subsection (2) if the trustee has reasonable grounds for suspecting that there is on or in any…
Section 132 — Vesting and transfer of property
(1) Subject to this section, and to section 158, where a trustee is appointed by the creditors, the property of the bankrupt passes to and vests in the trustee so appointed on the day on which the…
Section 133 — Disclaimer of onerous property
(1AA) Where any part of the property of the bankrupt consists of: (a) land of any tenure burdened with onerous covenants; or (b) property (including land) that is unsaleable or is not readily…
Section 134 — Powers exercisable at discretion of trustee
(1) Subject to this Act, the trustee may do all or any of the following things: (a) sell all or any part of the property of the bankrupt; (aa) accept, without terms or conditions, or subject to terms…