Bankruptcy and Family Law Legislation Amendment Act 2005 (20 of 2005)

Schedule 1   Amendments relating to the interaction between family law and bankruptcy law

Part 1   Amendments

Family Law Act 1975

57   After subsection 106B(1)

Insert:

(1A) If:

(a) a party to a marriage is a bankrupt; and

(b) the bankruptcy trustee is a party to proceedings under this Act;

the court may set aside or restrain the making of an instrument or disposition:

(c) which is made or proposed to be made by or on behalf of, or by direction or in the interest of, the bankrupt; and

(d) which is made or proposed to be made to defeat an existing or anticipated order in those proceedings or which, irrespective of intention, is likely to defeat any such order.

(1B) If:

(a) a party to a marriage is a debtor subject to a personal insolvency agreement; and

(b) the trustee of the agreement is a party to proceedings under this Act;

the court may set aside or restrain the making of an instrument or disposition:

(c) which is made or proposed to be made by or on behalf of, or by direction or in the interest of, the debtor; and

(d) which is made or proposed to be made to defeat an existing or anticipated order in those proceedings or which, irrespective of intention, is likely to defeat any such order.