BANKRUPTCY ACT 1966

PART VI - ADMINISTRATION OF PROPERTY  

Division 5 - Distribution of property  

SECTION 140   DECLARATION AND DISTRIBUTION OF DIVIDENDS  

140(1)   [Trustee ' s duty]  

The trustee of the estate of a bankrupt shall, subject to this section, with all convenient speed, declare and distribute dividends amongst the creditors who have proved their debts.

140(2)   [Distribution of dividends]  

Subject to the retention of such sums as are necessary to meet the costs of administration or to give effect to the provisions of this Act, the trustee shall distribute as dividend all moneys in hand.

140(3)   [Preconditions]  

Before declaring the first dividend, the trustee must give written notice of the trustee ' s intention to declare the dividend to anyone the trustee knows of who claims, or might claim, to be a creditor but has not lodged a proof of debt.

140(4)   [Reasonable period for lodgment]  

The trustee shall, in a notice published or sent in pursuance of subsection (3), specify a reasonable period within which creditors may lodge their proofs of debts.

140(5)   [Notice of intention to declare dividend]  

The trustee shall, before declaring a dividend (other than the first dividend or the final dividend) send notice of his or her intention to do so to each person who, to his or her knowledge, claims to be, or might claim to be, a creditor but has not lodged a proof of debt and has not been sent a notice under this section in relation to the declaration of a previous dividend.

140(6)   [Notice in pursuance of subsec (5)]  

The trustee shall, in a notice sent in pursuance of subsection (5), specify a reasonable period within which creditors may lodge their proofs of debts.

140(7)   [No declaration for 21 days]  

Where the trustee has sent a notice in pursuance of subsection (3) or (5) of this section in relation to the declaration of a dividend, the trustee shall not declare the dividend until after the expiration of 21 days after the expiration of the period specified in the notice.

140(8)   [Statements to creditors]  

Subject to subsections (9) and (10), where the trustee declares a dividend, he or she shall pay each creditor who has proved his or her debt the amount due to the creditor and send the creditor a statement in accordance with the approved form in relation to the realization and distribution of the estate.

140(9)   [Payment of dividends less than $10]  

Where, but for this subsection, the amount due to a creditor in respect of a dividend would be less than $10 or, if a greater amount is, as at the beginning of the day on which the dividend is declared, prescribed by the regulations for the purposes of this subsection, that greater amount, the trustee need not pay that dividend to the creditor.

140(10)   [Authority to pay dividend]  

Where a creditor has furnished to the trustee an authority in writing to pay a dividend due to the creditor to another person, the dividend payable to the creditor may be paid, and the statement to be sent to the creditor in pursuance of subsection (8) may be sent, to that person.

140(11)   [Interlocutory injunctions]  

This section has effect subject to an order under section 90SS or 114 of the Family Law Act 1975 (which deal with interlocutory injunctions).




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