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Bankruptcy Act 1966
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Department of the Treasury
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C2025C00442 (C16)
05 June 1987
-
12 January 1988
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Part I—Preliminary
1 Short title
2 Commencement
4 Repeal
5 Interpretation
6 Meaning of intent to defraud creditors
7 Application of Act
8 Act to bind the Crown
9 Laws of States and Territories not affected by Act
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Part II—Administration
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Division 1—General
10 Delegation by Attorney-General
11 Inspector-General in Bankruptcy
12 Functions of Inspector-General
13 Bankruptcy Districts
14 Registrars and Deputy Registrars
14A Stamps of Registrars
15 Official Receivers
16 Appointment of Inspector-General, Registrars, &c.
17 Acting Inspector-General and Acting Official Receivers
17A Acting Registrars and Deputy Registrars
17AA Functions of Registrar may be exercised by certain officials
17B Arrangements for services of State and Northern Territory Magistrates
18 The Official Trustee in Bankruptcy
18A Liability of the Official Trustee
19 Duties, &c., of trustees and Official Receiver
19A Liability of Inspector-General, Registrars, Deputy Registrars, Official Receivers, &c.
19B Officers to act in aid of each other
20 Records, returns and bank accounts
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Division 2—Common Investment Fund
20A Interpretation
20B The Common Investment Fund
20D Investment of moneys in Common Fund
20E Borrowing for the Common Fund
20F Moneys in Common Fund not held on account of particular estates, &c.
20G Common Investment Fund Equalization Account
20H Payment of moneys into and out of Equalization Account
20J Interest on moneys in Common Fund payable only in certain circumstances
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Part III—Courts
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Division 1—The Federal Court of Bankruptcy
21 Continuance of existing Federal Court of Bankruptcy
22 Exercise of jurisdiction of Federal Court of Bankruptcy
23 Qualification for appointment as Judge
24 Oath of allegiance and office
25 Salary and allowances of Judges of Federal Court of Bankruptcy
26 Seal of Federal Court of Bankruptcy
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Division 2—Jurisdiction and Powers of Courts in Bankruptcy
27 Bankruptcy courts
28 Jurisdiction and powers of courts in bankruptcy
29 Courts to act in aid of each other
30 General powers of Courts in bankruptcy
31 Exercise of jurisdiction
31A Exercise of Powers by certain officials
32 Costs
33 Adjournment, amendment of process and extension and abridgment of times
34 Orders and commissions for examination of witnesses
35 Transfer of proceedings
36 Enforcement of orders, &c.
37 Power of Court to rescind orders, &c.
38 Appeals to Federal Court of Australia
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Part IV—Proceedings in Connexion with Bankruptcy
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Division 1—Acts of Bankruptcy
40 Acts of bankruptcy
41 Bankruptcy notices
42 Payment &c., of debt to Commonwealth or State after service of bankruptcy notice
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Division 2—Creditors’ Petitions
43 Jurisdiction to make sequestration orders
44 Conditions on which creditor may petition
45 Creditor’s petition against partnership
46 Petition against 2 or more joint debtors
47 Requirements as to creditor’s petition
49 Change of petitioners
50 Court may direct Official Trustee or registered trustee to take control of property before sequestration
51 Costs of prosecuting creditor’s petition
52 Proceedings and order on creditor’s petition
53 Consolidation of proceedings
54 Bankrupt’s statement of affairs
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Division 3—Debtors’ Petitions
55 Debtor’s petition
56 Debtor’s petition against partnership
57 Debtor’s petition by joint debtors who are not partners
57A Time at which person becomes bankrupt on debtor’s petition
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Division 4—Effect of Bankruptcy on Property and Proceedings
58 Vesting of property upon bankruptcy
59 Second or subsequent bankruptcy
60 Stay of legal proceedings
61 Actions by bankrupt partners trustee
62 Actions on joint contracts
63 Death of bankrupt
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Division 5—First Meeting of Creditors, Public Examination and Committee of Inspection
64 First meeting of creditors
65 Election of chairman
66 Entitlement to vote at first meeting of creditors
67 Manner of voting
68 Admission and rejection of claim to vote
69 Public examination of bankrupt
70 Committee of inspection
71 Vacation of office, &c.
72 Member of committee not to purchase part of estate
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Division 6—Composition or Arrangement with Creditors
73 Composition or arrangement
74 Approval by the Court
75 Effect of composition or scheme of arrangement
76 Application of Part VIII to trustee of composition on scheme of arrangement
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Part V—Control over Person and Property of Debtors and Bankrupts
77 Duties of bankrupt as to discovery, &c., of property
78 Arrest of debtor or bankrupt
79 Re-direction of postal articles
80 Notification of change in name or address, &c.
81 Discovery of bankrupt’s property
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Part VI—Administration of Property
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Division 1—Proof of Debts
82 Debts provable in bankruptcy
83 Debt not to be considered proved until admitted
84 Manner of proving debts
85 Proof by employees
86 Mutual credit and set-off
87 Deduction of discounts
88 Apportionment to principal and interest of payments made before bankruptcy
89 Apportionment where security realized before or after bankruptcy
90 Proof of debt by secured creditor
91 Redemption of security by trustee, &c.
92 Amendment of valuation
93 Repayment of excess
94 Subsequent realization of security
95 Proof in respect of distinct contracts
96 Proof in respect of proportionate part of periodical payment
97 Production of bills of exchange and promissory notes
98 Amendment of proof of debt
99 Application to the Court where creditor or bankrupt considers proof wrongly admitted
100 Costs of proving debts &c.
101 Inspection of proofs by creditors, &c.
102 Admission or rejection of proofs
103 Debts to be admitted to nearest dollar
104 Appeal against decision of trustee in respect of proof
105 Costs of appeal
106 Trustee may administer oaths, &c.
107 Creditor not to receive more than the amount of his debt and interest
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Division 2—Order of Payment of Debts
108 Debts proved to rank equally except as otherwise provided
109 Priority payments
109A Debts due to employees
110 Application of estates of joint debtors
111 Postponement of spouse’s claims
112 Interest on debts
113 Apprenticeship, &c., claims
114 Payment of liabilities, &c., incurred under terminated deed, &c.
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Division 3—Property Available for Payment of Debts
115 Commencement of bankruptcy
116 Property divisible amongst creditors
117 Policies of insurance against liabilities to third parties
118 Execution by creditor against property of debtor who becomes a bankrupt, &c.
119 Duties of sheriff after receiving notice of presentation of petition, &c.
119A Duties of sheriff after receiving notice of bankruptcy, &c.
120 Avoidance of voluntary and marriage settlements
121 Fraudulent dispositions
122 Avoidance of preferences
123 Protection of certain transactions against relation back, &c.
124 Protection of certain payments to bankrupt, &c.
125 Certain accounts of undischarged bankrupt
126 Dealings with undischarged bankrupt in respect of after-acquired property
127 Limitation of time for making claims by trustee, &c.
128 Notice to trustee where identity of vendor, &c., with bankrupt in doubt
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Division 4—Realization of Property
129 Trustee to take possession of property of bankrupt
130 Seizure of property of bankrupt
131 Income of bankrupt
132 Vesting and transfer of property
133 Disclaimer of onerous property
134 Powers exercisable at discretion of trustee
135 Powers exercisable by trustee with permission
136 Right to pay off mortgages
137 Right of trustee to inspect goods held as security
138 Limitation of trustee’s power in respect of copyright, patents, &c.
139 Protection of trustee from personal liability in certain cases
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Division 5—Distribution of Property
140 Declaration and distribution of dividends
141 Joint and separate dividends
142 Apportionment of expenses of administration of joint and separate estates
143 Provision to be made for creditors residing at a distance, &c.
144 Right of creditor who has not proved debt before declaration of dividend
145 Final dividend
146 Distribution of dividends where bankrupt fails to file statement of affairs
147 No action for dividend
148 Right of bankrupt to surplus
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Part VII—Discharge of Bankrupts
149 Discharge of bankrupt by operation of law
150 Discharge by the Court
151 Effect of fraudulent settlements on discharge
152 Discharged bankrupt to give assistance
153 Effect of order of discharge
154 Power to annul bankruptcy
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Part VIII—Trustees
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Division 1—Appointment and Official Name
155 Registration of natural persons as trustees
156 Gazettal of registration, &c.
156A Consent to act as trustee
157 Appointment of trustees
158 Appointment of more than one trustee, &c.
159 Vacancy in office of trustee
160 Official Trustee to be trustee when no registered trustee is trustee
161 Trustee may act in official name
161A Triennial statements by registered trustees
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Division 2—Remuneration and Costs
162 Remuneration of trustee
163 Remuneration of the Official Trustee
164 Two or more trustees acting in succession
165 Trustee not to accept extra benefit, &c.
167 Taxation of costs
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Division 3—Accounts and Audits
168 Trustee not to pay moneys into private account
169 Trustee to pay moneys into bank account
170 Trustee to give Official Receiver and bankrupt information, &c.
171 Trustee to keep record of payments, &c.
172 Investment of surplus funds
173 Books to be kept by trustee
174 Trustee’s books when trading
175 Trustee’s accounts and audit
176 Court may order trustee to make good loss sustained by negligence, &c.
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Division 4—Control over Trustees
177 Control of creditors over trustees
178 Appeal to Court against trustee’s decision, &c.
179 Control of trustees by the Court
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Division 5—Vacation of Office
180 Registration of trustee
181 Removal of trustee
182 Bankruptcy of trustee, &c.
183 Release of registered trustee by the Court
184 Release of registered trustee by operation of law after 7 years
184A Release of the Official Trustee
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Part X—Arrangements with Creditors without Sequestration
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Division 1—Interpretation
187 Interpretation
187A Application of Part to joint debtors
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Division 2—Meeting of Creditors and Control of Debtor’s Property
188 Debtor may authorize trustee or solicitor to call meeting of creditors, &c.
189 Effect of authority to registered trustee under section 188
190 Trustee’s and solicitor’s duties and powers
191 Payments to protect property, &c.
192 Death of trustee to whom authority is given, &c.
193 Remuneration of controlling trustee
194 Calling of meeting
195 Debtor to attend meeting
196 Election of chairman, &c.
197 Adjournments
198 Entitlement to vote at meeting
199 Restriction on voting by proxy
200 Manner of voting
201 Admission and rejection of claim to vote
202 Quorum
203 Minutes of meeting
204 Resolution for deed of assignment, &c.
205 Duties of sheriff after receiving notice of signing of authority under section 188, &c.
205A Duties of sheriff after receiving notice of execution of deed, &c.
206 Court may adjourn hearing of petition where creditors have passed resolution for deed
207 Surrender of security, &c., where secured creditor has voted
208 Determination of control of debtor’s property by the Court
209 Acts of controlling trustee to bind trustee of subsequent deed, composition or bankruptcy
210 Controlling trustee’s bank accounts, &c.
211 Controlling trustee’s accounts
212 Court may order controlling trustee to make good loss sustained by negligence, &c.
212A Appeal to the Court against controlling trustee’s decision, &c.
212B Control of controlling trustees by the Court
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Division 3—General Provisions
213 Arrangements by debtor with creditors otherwise than in accordance with this Part, &c., to be void
214 Form of deeds, &c.
215 Trustee of deed or composition to be registered trustee
216 Execution of deeds
217 Failure of trustee to execute deed
218 Notice of execution of deed, acceptance of composition, &c.
219 Trustee may sue, be sued, &c., by official name
220 Filling of vacancy in office of trustee after execution of deed, &c.
221 Power to make sequestration order where debtor fails to attend meeting, execute deed, &c.
222 Power of the Court to declare deed or composition void
223 Calling of meetings other than the first meeting
223A Application of provisions of this Part relating to first meeting to other meetings under this Part
224 Validity of acts where deed or composition declared void or terminated, &c.
224A Notice that deed or composition declared void or terminated
225 Evidence of deed, resolution, &c.
226 Creditor may inspect deed, &c.
227 Stamp duty not payable on deeds, &c., entered into under this Part
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Division 4—Special Provisions applicable to Deeds of Assignment
228 Deed of assignment to bind all creditors
229 Vesting of property in trustee
230 Release of provable debts
231 Application of general provisions of Act to deeds of assignment
232 Certificate relating to release
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Division 5—Special Provisions applicable to Deeds of Arrangement
233 Deed of arrangement to bind all creditors
234 Deed of arrangement not to release debts unless otherwise provided
235 Termination of deed of arrangement
236 Court may terminate deed
237 Application of general provisions of Act to deeds of arrangement
237A Certificate by trustee that provisions of deed have been carried out
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Division 6—Special Provisions applicable to Compositions
238 Composition to bind all creditors
239 Court may set aside composition
240 Release of provable debts
241 Termination of composition by creditors
242 Court may terminate composition
243 Application of general provisions of Act to compositions
243A Certificate by trustee that terms of composition have been carried out
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Part XI—Administration of Estates of Deceased Persons in Bankruptcy
244 Administration of estates under this Part upon petition by creditor
245 Debtor dying after presentation of creditor’s petition
246 Filing of statement of deceased debtor’s affairs by legal personal representative, &c.
247 Petition for administration under this Part by person administering estate of deceased person
247A Commencement of administration under Part
248 Application of general provisions of Act in relation to administration under Part
248A Consolidation of proceedings
249 Vesting of property on making of order
249A Charge over property owned in joint tenancy
250 Effect of order under Part in case of deceased person who was bankrupt
251 Real property devised by will that vests directly in devisee to form part of estate in certain cases
252 Liability of legal personal representative
252A Power to annul order of administration under Part
253 Application of surplus
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Part XIA—Farmers’ Debts Assistance
253A Definition
253B Law of State or Territory may be proclaimed
253C Notice to Registrar concerning stay under proclaimed law
253D Registrar to notify relevant authority of pending proceedings
253E Relevant authority may apply for stay of proceedings under certain petitions
253F Relevant authority entitled to be heard on application for leave under subsection 55(6A), 56(11) and 57(8)
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Part XII—Unclaimed Dividends or Moneys
254 Payment of unclaimed moneys into Consolidated Revenue Fund
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Part XIII—Evidence
255 Transcript of evidence, &c.
256 Evidence of matters stated in notices published in Gazette
257 Evidence of proceedings at meetings of creditors or committee of inspection
258 Presumption as to due convening of meetings, &c.
259 Evidence of bankruptcy documents
260 Evidence as to bankruptcy and appointment of trustee, &c.
262 Swearing of affidavits
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Part XIV—Offences
263 Concealment, &c., of property, &c.
263A False affidavits
263B False proof of debts
264 Forgery of process, &c.
264A Failure of person to attend before the Court, &c.
264B Arrest of person failing to attend before the Court, &c.
264C Refusal to be sworn or give evidence, &c.
264D Prevarication or evasion in the course of examination under section 50, 69 or 81
264E Offences in relation to Registrar or magistrate conducting examination under section 50, 69 or 81
265 Failure of bankrupt or debtor to disclose property, &c.
266 Disposing or charging of property by person who becomes, or has become, a bankrupt
267 Omitting material particular from statement of affairs accompanying petition
268 Offences in relation to deeds and compositions
269 Bankrupt obtaining credit without disclosing his bankruptcy, &c.
270 Failure to keep proper books of account
271 Gambling or hazardous speculations
272 Leaving Australia with intent to defeat creditors, &c.
273 Trial of offences
275 Criminal liability not affected by discharge, &c.
276 Trustee acting under void deed
277 Punishment of contempt of court
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Part XV—Transitional Provisions
278 Bankrupts under repealed Act to continue to be bankrupts under this Act
279 Orders, &c., under repealed Act to continue to have force and effect
280 Continuance of Registrars, &c.
281 Registration of existing trustees
282 Continuance of trustees
284 Continuance of committees of inspection
285 Uncompleted proceedings under the repealed Act
287 Administration of property of existing bankrupts
288 Continuance of certain provisions of repealed Act in respect of existing bankruptcies
289 Existing compositions, &c., under Division 5 of Part IV of repealed Act
290 Administration of estates ordered to be administered summarily under Part IX of repealed Act
291 Application of Part X of Bankruptcy Act 1924 to existing estates
292 Application of Part XI of Bankruptcy Act 1924 to existing deeds of assignment, &c.
293 Application of Part XII of Bankruptcy Act 1924 to existing deeds of arrangement
295 Closing of Bankruptcy Estates Account
296 Application of certain offence provisions of Bankruptcy Act 1924 after the commencement of this Act
297 References to the Court, &c., in Bankruptcy Act 1924 in its application after the commencement of this Act
298 Application of evidence provisions of Bankruptcy Act 1924
299 Costs, fees and remuneration
300 Court may resolve difficulties
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Part XVI—Miscellaneous
301 Certain provisions in contracts, &c., to be void
302 Certain provisions in bills of sale, &c., to be void
303 Applications to Court or Registrar
304 Parts of dollar to be disregarded in determining majority in value of creditors, &c.
305 Payment of expenses by Commonwealth
306 Formal defect not to invalidate proceedings
306A Protection of Registrars, magistrates, &c., in relation to examinations under section 50, 69 or 81
306B Protection in respect of reports
307 Proceedings in firm name
308 Representation of corporation, &c.
309 Service of notices, &c.
310 Publication of notice of making of sequestration order, discharge, &c.
311 Stamp duty not payable on trustee’s cheques or receipts
312 Destruction of old accounts and records
313 Audit of accounts and records of the Registrars, the Official Trustee and the Official Receivers
314 Annual report
315 Rules and regulations
Schedule 1
Schedule 2
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Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
