BANKRUPTCY ACT 1966

PART IV - PROCEEDINGS IN CONNEXION WITH BANKRUPTCY  

Division 4 - Effect of bankruptcy on property and proceedings  

SECTION 60   STAY OF LEGAL PROCEEDINGS  

60(1)   [Stay of proceedings]  

The Court may, at any time after the presentation of a petition, upon such terms and conditions as it thinks fit:


(a) discharge an order made, whether before or after the commencement of this subsection, against the person or property of the debtor under any law relating to the imprisonment of fraudulent debtors and, in a case where the debtor is imprisoned or otherwise held in custody under such a law, discharge the debtor out of custody; or


(b) stay any legal process, whether civil or criminal and whether instituted before or after the commencement of this subsection, against the person or property of the debtor:


(i) in respect of the non-payment of a provable debt or of a pecuniary penalty payable in consequence of the non-payment of a provable debt; or

(ii) in consequence of his or her refusal or failure to comply with an order of a court, whether made in civil or criminal proceedings, for the payment of a provable debt;
and, in a case where the debtor is imprisoned or otherwise held in custody in consequence of the non-payment of a provable debt or of a pecuniary penalty referred to in subparagraph (i) or in consequence of his or her refusal or failure to comply with an order referred to in subparagraph (ii), discharge the debtor out of custody.

60(2)   [Stay of action]  

An action commenced by a person who subsequently becomes a bankrupt is, upon his or her becoming a bankrupt, stayed until the trustee makes election, in writing, to prosecute or discontinue the action.

60(3)   [Time limit for election]  

If the trustee does not make such an election within 28 days after notice of the action is served upon him or her by a defendant or other party to the action, he or she shall be deemed to have abandoned the action.

60(4)   [Certain actions may be continued]  

Notwithstanding anything contained in this section, a bankrupt may continue, in his or her own name, an action commenced by him or her before he or she became a bankrupt in respect of:


(a) any personal injury or wrong done to the bankrupt, his or her spouse or de facto partner or a member of his or her family; or


(b) the death of his or her spouse or de facto partner or of a member of his or her family.

Note:

See also subsection 5(6) .

60(4A)   [Proceedings under Proceeds of Crime legislation]  

Notwithstanding paragraph (1)(b), this section does not empower the Court to stay any proceedings under a proceeds of crime law.

60(5)   [Interpretation of action ]  

In this section, action means any civil proceeding, whether at law or in equity.




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