BANKRUPTCY ACT 1966

PART IV - PROCEEDINGS IN CONNEXION WITH BANKRUPTCY  

Division 4 - Effect of bankruptcy on property and proceedings  

SECTION 59   SECOND OR SUBSEQUENT BANKRUPTCY  

59(1)   [Effect on bankrupt ' s property]  

Where a person who is a bankrupt again becomes a bankrupt:


(a) the property of the bankrupt:


(i) that was acquired by, or devolved on, the bankrupt on or after the date of the earlier bankruptcy; and

(ii) that had not been distributed amongst the creditors in the earlier bankruptcy before the date on which the person became a bankrupt on the later occasion;
shall (subject to any disposition of that property made by the trustee in the earlier bankruptcy without knowledge of the presentation of the petition on, or by virtue of the presentation of which, the person became bankrupt on the later occasion and subject also to section 126 ) vest forthwith in the trustee in the later bankruptcy;


(b) property:


(i) that is acquired by, or devolves on, the bankrupt on or after the date of the later bankruptcy; and

(ii) that is divisible amongst the creditors in the later bankruptcy;
vests in the trustee in the later bankruptcy as soon as it is acquired by, or devolves on, the bankrupt;


(c) the trustee in the earlier bankruptcy:


(i) shall be deemed to be a creditor in the later bankruptcy in respect of any unsatisfied balance of his or her expenses or remuneration in the earlier bankruptcy, the liabilities incurred by him or her in administering the estate in the earlier bankruptcy and the debts proved in the earlier bankruptcy (whether or not those debts are entitled to priority, or are postponed, in the earlier bankruptcy);

(ii) shall rank equally with the ordinary unsecured creditors in the later bankruptcy; and

(iii) may, where he or she has lodged a proof of debt in the later bankruptcy, amend that proof of debt, without the consent of the trustee in the later bankruptcy, for the purpose of adding:

(A) his or her expenses in the earlier bankruptcy that have, or his or her remuneration in the earlier bankruptcy that has, accrued after the proof of debt was lodged;

(B) liabilities incurred by him or her in administering the estate in the earlier bankruptcy after the proof of debt was lodged; or

(C) debts proved in the earlier bankruptcy after the proof of debt was lodged;
or, with the consent of the trustee in the later bankruptcy, for any other purpose;


(d) a charge or charging order that, by virtue of subsection 118(9) , is void as against the trustee in the earlier bankruptcy continues to be void as against that trustee; and


(e) a transaction that, by virtue of section 120 , 121 , 122 , 128B or 128C , is void as against the trustee in the earlier bankruptcy continues to be void as against that trustee.


(f) (Omitted by No 143 of 1992, Sch.)

59(2)   [Notice of petition against bankrupt]  

Where the trustee of the estate of a bankrupt receives notice of the presentation of a creditor ' s petition against the bankrupt, the trustee shall hold the after-acquired property of the bankrupt that is then in the possession of the trustee, or the proceeds thereof, until the petition has been dealt with by the Court or has lapsed.

59(3)   [Reference to Court]  

Where the trustee of the estate of a bankrupt receives notice that a debtor ' s petition against the bankrupt has been referred to the Court, the trustee shall hold the after-acquired property of the bankrupt that is then in the possession of the trustee, or the proceeds thereof, until the Court has dealt with the petition.

59(4)   [Duties of trustee]  

Where the trustee of the estate of a bankrupt is holding after-acquired property of the bankrupt, or the proceeds of any such property, in pursuance of subsection (2) or (3) and the bankrupt again becomes a bankrupt, the trustee shall:


(a) in a case where the trustee is also the trustee in the later bankruptcy - hold all such property, and the proceeds of such property, as the trustee in the later bankruptcy; or


(b) in any other case - deliver all such property, and pay the proceeds of such property, to the trustee in the later bankruptcy.

59(5)   [Laws to be complied with]  

Where a law of the Commonwealth or of a State or Territory of the Commonwealth requires the transmission of property to be registered, and enables the trustee of the estate of a bankrupt to be registered as the owner of any such property that is part of the property of the bankrupt, that property, notwithstanding that it vests in equity in the trustee by virtue of subsection (1), does not vest in the trustee at law until the requirements of that law have been complied with.

59(6)   [Meaning of after-acquired property ]  

In subsections (2), (3) and (4), after-acquired property , in relation to a bankrupt, means such of the property that was acquired by, or devolved on, the bankrupt on or after the date of the bankruptcy, being property divisible amongst the creditors of the bankrupt, as has not been distributed amongst the creditors in the bankruptcy.




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