If the value of divisible property is likely to have a material impact on the administration, the trustee must obtain advice from an independent expert in assessing:

(a) the extent of the trustee's interest in any realisable asset; and

(b) the value of the property or offers for the property.

2.11 Disposal of property

The trustee must act independently and impartially in undertaking transactions and dealings relating to the disposal of the property of a bankrupt, debtor or deceased person.

2.12 Records

If, in an administration, the trustee makes a decision about the identification, protection, realisation or write-off of a significant asset of a bankrupt, debtor or deceased person that may have a material impact on the administration, the trustee must:

(a) record the decision in writing; and

(b) keep the record on the trustee's file for the administration.

Division 2.4 Remuneration and costs

2.13 Costs incurred to be necessary and reasonable

In conducting an administration, the trustee must:

(a) incur only those costs that are necessary and reasonable; and

(b) before deciding whether it is appropriate to incur a cost, compare the amount of the cost likely to be incurred with the value and complexity of the administration.

2.14 Receipt of moneys as trustee's remuneration

(1) If the trustee receives moneys from a debtor, bankrupt, legal personal representative of a deceased person, creditor or third party that are intended to cover the trustee's remuneration, the moneys must be:

(a) included in the trustee's remuneration fixed in accordance with section 162 of the Act; and

(b) properly accounted for in accordance with sections 168 and 169 of the Act.

(2) Subclause (1) does not apply to moneys recovered by the trustee under subsection 161B (2) of the Act.

2.15 Rate for tasks undertaken by trustee's staff

The trustee must ensure that time billed for a task undertaken in conducting an administration is charged at the appropriate rate for the level of staff who would be reasonably expected to undertake the task.

2.16 Records

The trustee must ensure that proper records are kept that:

(a) provide evidence of the time spent on work done in conducting an administration; and

(b) adequately describe the nature of the work; and

(c) state whether the trustee has had to recover moneys under subsection 161B (2) of the Act.

Division 2.5 Files and access to information

2.17 File maintenance

(1) The trustee must keep separate files for each administration.

(2) The trustee must keep a record of every material decision in an administration, and any supporting documentation relied on in relation to the decision, on the file for the administration.

2.18 Provision of information to creditors

(1) This clause applies to:

(a) the trustee of a composition or scheme of arrangement under Division 6 of Part IV of the Act; and

(b) the trustee of a personal insolvency agreement; and

(c) the trustee of the estate of a deceased person.

(2) The trustee and the trustee's staff must give information about an administration to a creditor who reasonably requests it.

Division 2.6 Meetings of creditors

2.19 Need for meeting

The trustee must consider whether the matters sought to be addressed at a meeting of creditors:

(a) require the holding of a meeting; or

(b) could be addressed more cost effectively by another form of communication with creditors, for example, a creditors' resolution without a meeting in accordance with section 64ZBA of the Act.

2.20 Matters to be considered when holding a meeting

In deciding whether the proposed time and place for a meeting of creditors is convenient for the creditors, the trustee must consider the following:

(a) the requirements for meetings set out in the Act and these Regulations;

(b) the location of creditors;

(c) the ability of creditors to return proxies and statements of debt;

(d) the complexity of issues to be considered by creditors before the meeting.

2.21 Attendance at meeting

The trustee, or a person appointed under subsection 63B (1) of the Act to represent the trustee at a meeting of creditors, must attend the meeting.

2.22 President's duties at creditors' meeting

(1) This clause applies to the following persons:

(a) a trustee who is elected to preside at a meeting of creditors;

(b) a person appointed under subsection 63B (1) of the Act to represent the trustee at a meeting of creditors;

(c) a controlling trustee presiding at a meeting of creditors.

(2) The person must:

(a) ensure that proper meeting procedures are followed; and

(b) ensure that the requirements relating to meetings set out in the Act and these Regulations are complied with; and

(c) ensure that all persons attending the meeting who are entitled to ask questions of the trustee, the bankrupt, the debtor or the legal personal representative of the deceased person are given an opportunity to do so; and

(d) ensure that the minutes secretary complies with the requirements of section 64Z of the Act; and

(e) take reasonable steps to establish whether there is sufficient evidence to support a creditor's statement under section 64D of the Act in relation tothe amount of liability of the bankrupt, the debtor or the estate of the deceased person to the creditor.

2.23 Attendance of Inspector–General at meetings

The trustee must not prevent the Inspector-General from attending, or participating in, a meeting of creditors.

Division 2.7 Trustee's accounts

2.24 Records of accounts

(1) The trustee must maintain a separate record of receipts and payments for each administration.

(2) If a single bank account is kept for 2 or more administrations, the trustee must collectively reconcile the records for the individual administrations with the bank records each month.

2.25 Verifying payments and transfers

The trustee must verify all payments from an administration, and transfers between estates, by reference to appropriate supporting vouchers and original documents kept on the administration file.

2.26 Cash book

The trustee must regularly reconcile the cash book for an administration with the bank records for the administration, in accordance with the amount of activity in relation to the administration.

Part 3 Standards for trustees other than controlling trustees

Division 3.1 Application

3.1 Application of Part 3

This Part applies to:

(a) the trustee of the estate of a bankrupt; and

(b) the trustee of a personal insolvency agreement; and

(c) the trustee of the estate of a deceased person.

Division 3.2 Reporting to creditors

3.2 Notification of administration

The notice given by the trustee to the creditors of a bankrupt, debtor or deceased person must include the following information:

(a) the name, date of birth, address and occupation of the bankrupt, debtor or legal personal representative of the deceased person;

(b) the business name or name of any associated entity or related entity of the bankrupt, debtor or deceased person;

(c) the date and type of administration;

(d) an outline of matters investigated by the trustee up to the date of the notification;

(e) advice about any possible contributions liability of the bankrupt;

(f) any matters the trustee has identified as needing further investigation.

Division 3.3 Creditors' claims

3.3 Provable debts in a joint administration

In conducting an administration in relation to joint bankrupts or debtors, the trustee must ensure that a debt is proved in the appropriate estate.

3.4 Evidence relating to proof of debt

The trustee must ensure that each creditor's claim or proof of debt in relation to an administration bears evidence of:

(a) its admission or rejection; and

(b) the reason for its admission or rejection; and

(c) the amount for which the claim or proof of debt has been admitted.

3.5 Evidence of liability for debt

(1) If necessary, the trustee must ask a creditor to give evidence in writing in relation to a debt claimed by the creditor:

(a) to establish the liability of a bankrupt, a debtor or the estate of a deceased person for the debt; or

(b) to identify the estate or property against which the claim should be admitted.

(2) If the trustee considers that evidence given under subclause (1) is insufficient for the purposes of paragraph (1) (a) or (b), the trustee, before asking for further information, must have regard to the expected dividend rate and the materiality of the issue requiring clarification.

(3) The trustee must keep a copy of any evidence or information relied on in deciding, for the purposes of voting or distributing dividends, whether to accept or reject the creditor's claim.

Division 3.4 Distribution of dividends

3.6 Creditors' views to be considered

The trustee must consider the views of creditors in relation to whether moneys held by the trustee should be:

(a) applied to conduct further investigations in relation to the administration; or

(b) distributed as a dividend.

3.7 Distribution of estate funds

(1) The trustee must distribute estate funds in a timely manner, having regard to:

(a) the complexity of the administration and the claims of creditors; and

(b) the amount of funds available for distribution; and

(c) the need to retain funds in the estate or property to meet existing or expected commitments.

(2) The trustee must make an interim distribution of dividends to creditors unless an existing or expected commitment is likely to account for a significant level of the available funds from the estate or property.

3.8 Advice relating to dividends and administration

The trustee must, when distributing dividends to the creditors of a bankrupt, a debtor or the estate of a deceased person, advise creditors about whether:

(a) further dividends are expected to be distributed; or

(b) the administration is finalised.

3.9 Records

The trustee must keep a record of the following information for each administration:

(a) the name of each creditor who received a dividend;

(b) the amount of each admitted claim;

(c) the amount of dividend paid to each creditor.

Part 4 Standards for trustees of bankrupt estates

Division 4.1 Application

4.1 Application of Part 4

This Part applies to:

(a) the trustee of the estate of a bankrupt; and

(b) the trustee of the estate of a deceased person.

Division 4.2 Assets

4.2 Identifying assets for vesting

The trustee must take appropriate steps to identify the assets of the estate of a bankrupt or deceased person that will vest in the trustee, including the following:

(a) obtaining and reviewing the statement of affairs of the bankrupt or deceased person;

(b) considering the size of the deficiency in the estate for the purpose of finding possible assets or determining whether an issue needs to be investigated;

(c) considering the activities and circumstances of the bankrupt or deceased person to decide whether assets disclosed by the bankrupt or the legal representative of the deceased person are consistent with what would be expected of a bankrupt having a similar background or undertaking a similar activity;

(d) if the bankrupt is or was, or the deceased person was, involved in significant corporate or trust activity  - making inquiries of third parties (for example, solicitors, accountants, creditors, associated entities and financial institutions) to establish whether there is any divisible property or antecedent transactions.

4.3 Protecting certain assets

The trustee must take appropriate steps to protect assets with a commercial value that have vested in him or her, including doing any or all of the following:

(a) ensuring that the assets are adequately insured;

(b) taking possession of the assets;

(c) perfecting legal ownership of the assets.

Division 4.3 Contributions

4.4 Application of Division 4.3

This Division applies to the trustee of the estate of a bankrupt.

4.5 Income and contribution assessment

(1) The trustee must, as soon as possible after all necessary information has been made available, make an assessment of:

(a) the income of a bankrupt in respect of a contribution assessment period; and

(b) the contribution that the bankrupt is liable to pay.

(2) The trustee must:

(a) act fairly and reasonably in determining the time for payment of contributions liability; and

(b) if full payment within the contribution assessment period or before discharge would cause hardship to the bankrupt, consider giving the bankrupt an extension of the time for payment of contributions liability.

(3) The trustee must give the bankrupt a copy of the assessment of income and contributions liability, setting out and explaining the basis on which the amount of any contributions liability has been calculated.

4.6 Monitoring payment of contributions

The trustee must:

(a) monitor the payment of contributions by a bankrupt to ensure the contributions liability is discharged; and

(b) if necessary, take appropriate steps to recover contributions that remain unpaid after the time for payment has passed.

Part 5 Standards for controlling trustees

5.1 Application of Part 5

This Part applies to a controlling trustee.

5.2 Notification of administration

The notice given by the controlling trustee to the creditors of the debtor must include the debtor's name, date of birth, address and occupation.

5.3 Investigating debtor's property and income

(1) As soon as practicable after an authority under section 188 of the Act becomes effective, the controlling trustee must conduct appropriate investigations of the debtor's property and income.

(2) If the debtor's property includes significant real estate, company structures or motor vehicles, the controlling trustee must:

(a) search the appropriate registries for information about the property; and

(b) obtain advice from an independent expert about the value of the property.

(3) If the debtor was or is involved in significant corporate or trust activity, the controlling trustee must take appropriate steps to identify the assets of the debtor that will be subject to the personal insolvency agreement, including making inquiries of third parties (for example, solicitors, accountants, creditors, associated entities and financial institutions) to establish whether there is any divisible property or antecedent transactions.

5.4 Report to creditors

The controlling trustee's report under section 189A of the Act must also include the following:

(a) information about each matter mentioned in subsection 188A (2) of the Act;

(b) the basis on which the debtor's property has been valued;

(c) the kind of investigations the controlling trustee has carried out and whether any other matters need to be investigated;

(d) the reasons for the controlling trustee's opinion about whether creditors' interests would be better served by accepting the debtor's proposal for dealing with the debtor's affairs under Part X of the Act or by the bankruptcy of the debtor.

5.5 Records

The controlling trustee must ensure that:

(a) bank accounts maintained in accordance with sections 168 and 169 of the Act; and

(b) records maintained in accordance with section 173 of the Act in respect of all transactions relating to the debtor's property;

are kept separate from records relating to any later administration that takes place in relation to the debtor.

5.6 Voting at creditors' meeting

In deciding whether a creditor is entitled tovote at a meeting of creditors, the controlling trustee must:

(a) have regard to the merits of the creditor's claim; and

(b) act impartially and independently, without regard to the debtor's wishes.

20   Schedule 6

substitute

Schedule 6 Modifications in relation to Part X of the Act

(regulations 10.01, 10.05, 10.07, 10.08 and 10.13)

Part 1 Modifications of Part X of the Act  - joint debtors

1 Section 187A

omit

This Part

insert

(1) This Part

2 Section 187A

insert

(2) In the application of this Part (other than subsection 187 (1A)) to joint debtors, whether partners or not, an expression specified in one of the following rules of interpretation applies to the extent that the context reasonably permits:

(a) 'a debtor' is to be read as 'joint debtors';

(b) 'the debtor' is to be read as 'the joint debtors';

(c) 'the debtor's' is to be read as 'the joint debtors';

(d) if used in relation to a debtor:

(i) 'he or she' is to be read as 'they'; and

(ii) 'his or her' is to be read as 'their'; and

(iii) 'him or her' is to be read as 'them'; and

(iv) a noun or verb in the singular form is to be read as being in the plural form.

(3) Subsection (2) applies, subject to any specific modifications of this Part by the Bankruptcy Regulations 1996.

(4) To the extent that the context reasonably permits, a reference (by operation of subsection (2)) to joint debtors includes a reference to any of the joint debtors.

(5) A reference to the affairs, or examinable affairs, of a debtor includes a reference to the separate affairs, or separate examinable affairs, of a joint debtor.

3 Subsection 188 (1)

omit

A debtor

insert

If each joint debtor is a person

4 Subsection 188 (1)

before

may sign

insert

the joint debtors

5 Subsections 188 (2AA) and (2AB)

omit

the debtor

insert

each joint debtor

6 Subsection 188 (2C)

omit the second occurrence of

the debtor

insert

each joint debtor

7 Subsection 188 (2D)

omit the second occurrence of

the debtor

insert

each joint debtor

8 Subsection 188 (4)

before

debtor

insert

joint

9 Subsection 188 (5)

omit

the District in which the

insert

the District in which each joint

10 Paragraphs 188A (2) (a) and (c)

omit

the debtor's

insert

each joint debtor's

11 Paragraph 188A (2) (e)

omit

the debtor

insert

each joint debtor

12 Paragraph 188A (2) (l)

omit

the debtor

insert

each joint debtor

13 Subsection 189AB (1)

omit

(1) When the debtor's property becomes subject to control under this Division, the debtor's property is charged with:

insert

(1) When the property of joint debtors becomes charged under this Division, the charges specified in subsection (1A) are created with respect to:

14 After subsection 189AB (1)

insert

(1A) The charges are:

(a) a charge over the joint property of the joint debtors; and

(b) a separate charge over the separate property of each joint debtor.

15 Subsection 189AB (2)

omit

the charge is not affected

insert

none of the charges is affected

16 Subsections 189AB (3) and (4)

omit

The charge

insert

Each charge

17 Paragraph 189A (1) (a)

substitute

(a) summarising and commenting on the information about:

(i) the joint estates of the joint debtors; and

(ii) the separate estate of each joint debtor;

that is available to the controlling trustee; and

Part 2 Modifications of Division 5 of Part IV of the Act  - meetings called under authorities under section 188 of the Act

1 Subsection 63A (1), definition of joint bankruptcy , subparagraph (d) (ii)

omit

jointly.

insert

jointly; or

2 Subsection 63A (1), definition of joint bankruptcy , after paragraph (d)

insert

(e) the situation arising out of the signing, by joint debtors for the purposes of section 188, of a joint authority or separate authorities for the administration of their joint estate.

3 Subsection 64A (2)

substitute

(2) Notice of a meeting must:

(a) be given in a manner specified in the regulations; and

(b) be published in:

(i) a national daily newspaper that circulates throughout Australia; and

(ii) a regional daily newspaper of the State or Territory in which the debtor resides.

4 After subsection 64B (5)

insert

(6) If the meeting is the first meeting of creditors called under an authority given under section 188, the notice must state that an information sheet about Part X, dealing with the following matters, may be obtained from the Insolvency and Trustee Service Australia:

(a) meetings under Part X;

(b) controlling trustees;

(c) the administration of an authority under section 188;

(d) the application of Part X to an authority under section 188;

(e) personal insolvency agreements;

(f) the rights of creditors under Part X.

5 After paragraph 64D (aa)

insert

(ab) whether the creditor, in relation to the debtor, is a related entity; and

6 Paragraph 64G (g)

substitute

(g) if the meeting is the first meeting  - tabling of the following documents:

(i) the statement of affairs, and the proposal for dealing with them, required by subsection 188 (2C) or (2D);

(ii) the report by the controlling trustee required by section 189A;

(iii) the written statement by the controlling trustee required by section 189B;

7 Section 64P, heading

substitute

64P Controlling trustee to preside at meeting under section 188

8 Subsections 64P (1) and (2)

substitute

(1) Subject to subsection (2), the controlling trustee must preside at a meeting called under an authority under section 188.

(2) The creditors and their representatives may:

(a) vote to remove the controlling trustee as President; and

(b) nominate another person to preside at the meeting.

9 Subsection 64P (6)

omit each mention of

the trustee

insert

the controlling trustee

10 Subsection 64P (7)

omit

the trustee

insert

the controlling trustee

11 Subsection 64R (1)

substitute

(1) If the meeting is the first meeting, the President must then request the controlling trustee to lay before the meeting the documents specified in paragraph 64G (g), and the controlling trustee must comply with the request.

12 Subsection 64R (2)

omit

the statement of affairs,

insert

those documents,

13 Subsection 64U (1)

substitute

(1) At the first meeting called under an authority under section 188 that is attended by:

(a) the controlling trustee; or

(b) if the creditors have passed a special resolution under paragraph 204 (1) (b)  - the trustee of a personal insolvency agreement;

the President must ask the trustee to state the basis on which he or she wishes to be remunerated.

14 Before subsection 64Y (1)

insert

(1A) The controlling trustee may adjourn a meeting to undertake further investigations, in relation to the controlling trusteeship, that the controlling trustee considers necessary.

(1B) The creditors attending the meeting may, by special resolution, revoke the trustee's decision to adjourn the meeting.

15 After subsection 64ZC (5)

insert

(5A) An instrument appointing a proxy must include a statement:

(a) disclosing whether or not the proxy has received a financial incentive to vote in a particular way:

(i) on a particular matter or matters that may arise at the meeting; or

(ii) on a particular motion or motions that may be proposed at the meeting; and

(b) including information to the effect that it is an offence, under subsection 263C (1), to give the trustee a voting document knowing or reckless that the document is false or misleading in a material particular.

16 After subsection 64ZE (2)

insert

(3) This section applies in relation to a personal insolvency agreement only if:

(a) a joint estate forms part of the property that is to be dealt with under the agreement; and

(b) the agreement does not specifically provide for distribution of the joint estate.

Part 3 Modifications of Part VIII of the Act   - controlling trustees and trustees of personal insolvency agreements

1 Before Part VIII, Division 1

insert in Part VIII

Division 1A Interpretation

154AA Interpretation

In this Part, in its application to Part X, a reference to a registered trustee includes a reference to a controlling trustee and a trustee of a personal insolvency agreement.

2 Section 156A

omit

3 Subsection 157 (1)

substitute

(1) If:

(a) the Official Trustee is:

(i) under section 188 or 192, the controlling trustee in relation to a debtor; or

(ii) under Part X, the trustee of a personal insolvency agreement; and

(b) the creditors wish to appoint, in place of the Official Trustee:

(i) a registered trustee or a solicitor as the controlling trustee; or

(ii) a registered trustee as the trustee of the personal insolvency agreement;

the creditors may do so by resolution at a meeting of creditors.

4 Section 158

substitute

158 Appointment of more than 1 controlling trustee

The creditors may appoint 2 or more controlling trustees jointly, or jointly and severally.

5 Section 159

omit

6 Section 160

substitute

160 Vacancy in position of trustee  - Official Trustee to act

If at any time there is no controlling trustee in relation to a debtor, or no trustee of a personal insolvency agreement under Part X, the Official Trustee is to act as the trustee.

7 After subsection 161 (1)

insert

(1A) This section does not apply in relation to a trustee of a personal insolvency agreement.

8 Subsection 173 (1)

substitute

(1) A controlling trustee who has consented to exercise powers given by an authority under section 188 must keep such accounts and records as are necessary to exhibit a full and correct account of the debtor's affairs and must permit a creditor:

(a) to inspect, at all reasonable times, either personally or by an agent, the accounts and records relating to the controlling trusteeship; and

(b) to take a copy of those accounts and records.

Penalty:   5 penalty units.

9 Section 180

omit

trustee of an estate.

insert

trustee, other than controlling trustee, under Part X.

10 Section 181

substitute

181 Removal of trustee

The creditors may, by resolution, at a meeting of which at least 7 days notice has been given, remove a controlling trustee or the trustee of a personal insolvency agreement and may, at that meeting or a later meeting, appoint another trustee to replace the removed trustee.

11 Subsection 181A (1)

substitute

(1) The current controlling trustee or the current trustee of a personal insolvency agreement may, with the written consent of another trustee (either a registered trustee or the Official Trustee), nominate the other trustee as the new trustee.

12 Subsection 181A (4)

substitute

(4) If no creditor lodges a written notice of objection with the current trustee at least 2 days before the specified date, the new trustee replaces the current trustee on the date specified in the notice.

Part 4 Modifications of Division 1 of Part V of the Act  - debtors whose property is subject to control under Division 2 of Part X of the Act

1 Section 77F

substitute

77F Allowances and expenses to be paid out of debtor's property subject to control under Division 2 of Part X

If the evidence that a person gives, or the books that a person produces, under section 77C, relate to matters concerning the property of a debtor that is subject to control under Division 2 of Part X, any amount payable to the person under section 77D or 77E is to be paid out of that property.

2 Subsection 81 (1)

substitute

(1) Where a person (in this section called the relevant person ) becomes a debtor whose property is subject to control under Division 2 of Part X, the Court or a Registrar may at any time (whether before or after control over that property has ended), on the application of:

(a) a person (in this section called a creditor ) who has or hada debt that would be provable if the debtor were a bankrupt;

(b) the controlling trustee; or

(c) the Official Receiver;

summon the relevant person for examination in relation to the property that is subject to control under Division 2 of Part X.

Part 5 Modification under subsection 231 (1) of the Act  - personal insolvency agreements

1 Section 77F

substitute

77F Allowances and expenses to be paid out of debtor's property subject to personal insolvency agreement

If the evidence that a person gives, or the books that a person produces, under section 77C, relate to matters concerning the property of a debtor that is subject to a personal insolvency agreement, any amount payable to the person under section 77D or 77E is to be paid out of that property.

Part 6 Modifications under subsection 231 (3) of the Act  - personal insolvency agreements

1 Subsection 113 (1)

omit

presentation of a petition on which, or by virtue of the presentation of which, a person became a bankrupt,

insert

making of a sequestration order,

2 Subsection 113 (1)

omit

or, in the case of a debtor's petition, the presentation of the petition

3 After subsection 133 (13)

insert

(14) This section does not apply in relation to a personal insolvency agreement.

4 After paragraph 134 (1) (b)

insert

(ba) carry on a business of the debtor in accordance with an authorisation given under subsection (5);

5 After subsection 134 (4)

insert

(5) If a personal insolvency agreement provides for the business of the debtor to be assigned to the trustee, the agreement may:

(a) authorise the trustee to carry on a business of a debtor; and

(b) specify the period during which, and the conditions (if any) subject to which, the trustee may carry on the business.

(6) The creditors may vary or terminate an authority under subsection (5) by passing a special resolution to that effect at a meeting called for the purpose.

(7) This section extends only in relation to property of the debtor that is subject to the personal insolvency agreement.

6 Subsection 136 (1)

omit

Where any property of the bankrupt is subject to a mortgage,

insert

Where any property of the debtor that is subject to the personal insolvency agreement is also subject to a mortgage,

7 Subsection 137 (1)

omit

Where goods of a bankrupt

insert

Where goods of a debtor that are subject to a personal insolvency agreement

8 Paragraphs 138 (1) (a) and (b)

substitute

(a) the property of a debtor that is subject to a personal insolvency agreement includes rights in respect of industrial property; and

(b) the debtor is liable to pay royalties or a share of profits to a person in respect of those rights;

9 Paragraph 138 (1) (c)

omit

the bankrupt;

insert

the debtor;

10 Paragraph 138 (1) (d)

omit

the bankrupt

insert

the debtor

11 Paragraphs 139 (1) (a) and (b)

substitute

(a) the trustee has seized or disposed of any goods in the possession or on the premises of a debtor that are subject to a personal insolvency agreement without notice of any claim by any person in respect of those goods; and

(b) the goods were not, at the date of execution of the personal insolvency agreement, the property of the debtor;

12 Subsection 139 (2)

omit everything after

in respect of property

insert

that is subject to the personal insolvency agreement, being rates, land tax or municipal or other statutory charges that fall due on or after the date of execution of the personal insolvency agreement, except to the extent, if any, of the rents and profits received by the trustee in respect of that property on or after the date of execution of the personal insolvency agreement.

13 Subsection 139 (3)

substitute

(3) Where the trustee of a personal insolvency agreement carries on a business previously carried on by the debtor, the trustee is not personally liable for any payment in respect of long service leave or extended leave:

(a) for which the debtor was liable; or

(b) to which a person employed by the trustee in his or her capacity as trustee of the personal insolvency agreement, or the legal personal representative of such a person, becomes entitled after the date of execution of the personal insolvency agreement.

14 Subsection 139 (4)

omit

trustee of the estate of a bankrupt

insert

trustee of a personal insolvency agreement

15 Section 139ZJ

omit

In this Subdivision:

insert

(1) In this Subdivision:

16 Section 139ZJ

insert

(2) In sections 139ZK, 139ZL and 139ZP, a reference to a bankrupt is to be read as a reference to a debtor.

(3) In subsection (2):

debtor means a person who has executed a personal insolvency agreement.

17 Paragraphs 139ZK (1) (e) and (f)

omit

bankruptcy,

insert

personal insolvency agreement,

18 Subsection 139ZL (1)

omit everything before paragraph (a), insert

(1) If a debtor is liable to pay a specified amount of his or her income to the trustee in accordance with a personal insolvency agreement, the Official Receiver:

19 Subsection 139ZL (1)

omit

make the contribution.

insert

pay that amount.

20 Paragraphs 139ZL (3) (a) and (b)

omit

the contribution

insert

the amount of income

21 Subsection 139ZQ (1)

omit

bankrupt under Division 3,

insert

personal insolvency agreement because of the application of any of sections 120 to 125,

22 Subsection 139ZR (3)

omit

Division 3.

insert

any of sections 120 to 125.

Part 7 Modification under subsection 231 (5) of the Act  - trustees of personal insolvency agreements

1 Subsection 173 (1)

substitute

(1) The trustee of a personal insolvency agreement must keep such accounts and records as are necessary to exhibit a full and correct account of the administration of the agreement and must permit a creditor of the debtor:

(a) to inspect, at all reasonable times, either personally or by an agent, the accounts and records relating to the personal insolvency agreement; and

(b) to take a copy of those accounts and records.

Penalty:   5 penalty units.

21   Schedule 8, after item 7

insert

22   Schedule 8, item 15, column 5

omit

7 days

insert

2 days

23   Schedule 8, item 16, column 3

omit

(subsection 154A (2))

24   Schedule 8, item 17, column 2

omit

Section 154C

insert

Section 155C

25   Schedule 8, item 17, column 3

omit

(subsection 154A (2))

insert

(subsection 155C (2))

26   Schedule 8, item 23, column 5

omit

insert

27   Schedule 8, item 24

substitute

28   Schedule 8, item 25

substitute

29   Schedule 8, item 26, column 5

omit

7 days

insert

2 days

30   Schedule 8, items 27, 27A and 28

substitute

31   Schedule 8, items 30 and 32, column 5

omit

insert

32   Schedule 9, item 1

substitute