BANKRUPTCY ACT 1966

PART VI - ADMINISTRATION OF PROPERTY  

Division 2 - Order of payment of debts  

Subdivision A - General  

SECTION 114   PAYMENT OF LIABILITIES ETC. INCURRED UNDER TERMINATED DEED ETC.  

114(1)   [Provable debts]  

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 after the commencement of this Act, been set aside or terminated:


(a) any unpaid liabilities incurred in good faith, and any unpaid commitments entered into in good faith, under the terminated agreement, composition or scheme of arrangement by the trustee or the debtor;


(b) any expenses reasonably incurred in good faith under the terminated agreement, composition or scheme of arrangement by the trustee, being expenses for which he or she has not been reimbursed; and


(c) such proportionate part of the unpaid remuneration of the trustee as the creditors in relation to the terminated agreement, composition or scheme of arrangement determine by resolution;

are debts provable in the bankruptcy.

114(2)   [Interpretation]  

In this section:

the terminated agreement, composition or scheme of arrangement
means the agreement, composition or scheme of arrangement that has been set aside or terminated.




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