Bankruptcy Legislation Amendment Act 2002 (131 of 2002)

Schedule 1   Amendments

Part 1   Amendments

Bankruptcy Act 1966

81   After section 129

Insert:

129AA Time limit for realising property

(1) This section applies only to:

(a) property (other than cash) that was disclosed in the bankrupt's statement of affairs; and

(b) after-acquired property (other than cash) that the bankrupt discloses in writing to the trustee within 14 days after the bankrupt becomes aware that the property devolved on, or was acquired by, the bankrupt.

In this subsection, cash includes amounts standing to the credit of a bank account or similar account.

(2) If any such property is still vested in the trustee immediately before the revesting time, then it becomes vested in the bankrupt at the revesting time by force of this section.

(3) Initially, the revesting time for property is:

(a) for property disclosed in the statement of affairs - the beginning of the day that is the sixth anniversary of the day on which the bankrupt is discharged from the bankruptcy; and

(b) for after-acquired property that is disclosed before the bankrupt is discharged from the bankruptcy - the beginning of the day that is the sixth anniversary of the day on which the bankrupt is discharged; and

(c) for after-acquired property that is disclosed after the bankrupt is discharged from the bankruptcy - the beginning of the day that is the sixth anniversary of the day on which the bankrupt disclosed the property to the trustee.

(4) If the trustee, before the current revesting time, gives the bankrupt a written notice (an extension notice ) stating that a later revesting time applies to particular property, then that later time becomes the revesting time for that property.

(5) There is no limit on the number of extension notices that the trustee may give (either generally or in relation to particular property).

(6) The time specified in an extension notice must be either:

(a) a specified time that is not more than 3 years after the current revesting time; or

(b) a time that is reckoned by reference to a specified event (for example, the death of a life tenant), but is not more than 3 years after the happening of that event.

(7) Any property that becomes vested in the bankrupt under this section thereupon ceases to be subject to section 127.