Bankruptcy Regulations 2021

PART 4 - PROCEEDINGS IN CONNECTION WITH BANKRUPTCY  

Division 2 - Petitions  

SECTION 15   PRELIMINARY REMUNERATION AND EXPENSES OF TRUSTEE  
Scope

15(1)    
This section applies if:

(a)    a creditor applies under subsection 50(1A) of the Act for the Court to make a direction in relation to a debtor; and

(b)    the Court, under subsection 50(1) of the Act, directs a trustee to take control of the debtor ' s property or makes another order in relation to the property; and

(c)    in accordance with the direction or other order, the creditor deposits an amount (the first amount ) with the trustee for the purposes of covering the preliminary remuneration and expenses of the trustee in relation to the debtor.

Note:

A direction under subsection 50(1) of the Act may be given to the Official Trustee or a registered trustee.

Refund to creditor of amounts deposited in excess of preliminary remuneration and expenses

15(2)    
The creditor is entitled to a refund of the sum of the first amount and any amount covered by subsection (4) less an amount equal to the preliminary remuneration and expenses of the trustee in relation to the debtor if any of the following events occur:

(a)    the debtor enters into a personal insolvency agreement, or the debtor ' s estate is administered under Part XI of the Act, and the Court authorises the trustee to transfer the debtor ' s property to some other person;

(b)    a sequestration order is made against the estate of the debtor;

(c)    if a creditor ' s petition was presented in relation to the debtor - the creditor ' s petition is dismissed;

(d)    a debtor ' s petition relating to the debtor is accepted by the Official Receiver;

(e)    a proposal by the debtor relating to a debt agreement is accepted under section 185EC of the Act.

15(3)    
The trustee must pay a refund payable under subsection (2) to the creditor.

Additional amounts

15(4)    
An amount (the additional amount ) is covered by this subsection if:

(a)    both of the following apply:

(i) the trustee requests the creditor to deposit with the trustee the additional amount in addition to the first amount;

(ii) the creditor deposits the additional amount with the trustee; or

(b)    all of the following apply:

(i) the Court is satisfied that the first amount is insufficient to cover the preliminary remuneration and expenses of the trustee in relation to the debtor;

(ii) the Court, under subsection 50(1) of the Act, directs, on application by the trustee, the creditor to deposit the additional amount with the trustee;

(iii) the creditor deposits the additional amount with the trustee.