Section 20C — Property (Relationships) Act 1976: Payment of protected interest on bankruptcy of other spouse or partner

20C Payment of protected interest on bankruptcy of other spouse or partner (1) If, on the bankruptcy of a spouse or partner, the family home (including a homestead) or, if section 11A applies, the proceeds of the sale of the family home pass to the Official Assignee, the Official Assignee must pay to the other spouse or partner the lesser of— (a) the amount of the protected interest of the other spouse or partner; or (b) so much of that amount as remains after the Official Assignee has paid the debts specified in subsection (2) . (2) The debts referred to in subsection (1)(b) are as follows: (a) any debts secured on the family home or homestead or, as the case may be, the proceeds of sale of the family home: (b) any unsecured debt incurred— (i) by the spouses or partners jointly; or (ii) by the spouse or partner subsequently declared bankrupt, for the purpose of acquiring, improving, or repairing the family home. (3) If, on the bankruptcy of a spouse or partner, section 11B applies, the Official Assignee must pay to the other spouse or partner such amount in satisfaction of the protected interest of that spouse or partner as the Court may direct, on application by the Official Assignee or by that spouse or partner. Sections 20A to 20F were inserted, as from 1 February 2002, by section 20 Property (Relationships) Amendment Act 2001 (2001 No 5). See Part 9 of this Act as to the transitional and saving provisions. The heading to section 20C was amended, as from 26 April 2005, by section 3(2) Property (Relationships) Amendment Act 2005 (2005 No 19) by substituting the word “ partner ” for the words “ de facto partner ” . Section 20C was amended, as from 26 April 2005, by section 3(2) Property (Relationships) Amendment Act 2005 (2005 No 19) by substituting the word “ partner ” for the words “ de facto partner ” wherever they appear. Subsection (2)(b)(i) was amended, as from 26 April 2005, by section 3(1) Property (Relationships) Amendment Act 2005 (2005 No 19) by substituting the word “ partners ” for the words “ de facto partners ” .