Bankruptcy Legislation Amendment Act 2002 (131 of 2002)

Schedule 1   Amendments

Part 1   Amendments

Bankruptcy Act 1966

79   Subsection 115(1)

Repeal the subsection, substitute:

(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 commission of the earliest act of bankruptcy committed by the person within the period of 6 months immediately before the date on which the creditor's petition was presented.

(1A) If:

(a) a person becomes a bankrupt on a creditor's petition that was based on breach of a bankruptcy notice; and

(b) the time for compliance with the notice was extended under subsection 41(7); and

(c) the Court making the sequestration order considers that the application under subsection 41(7) was frivolous, vexatious or otherwise without substantial merit;

then the bankruptcy is taken to have relation back to, and to have commenced at, the time that would have applied under subsection (1) of this section if the time for compliance had not been extended.

(1B) If a person becomes a bankrupt because of a sequestration order made under Division 6 of Part IV or under Part X, then the bankruptcy is taken to have relation back to, and to have commenced at, the time of the commission of the earliest act of bankruptcy committed by the person within the period of 6 months immediately before the date on which the application for the sequestration order was made.