Bankruptcy Legislation Amendment (Anti-avoidance) Act 2006 (33 of 2006)

Schedule 1   Amendments

Bankruptcy Act 1966

15A   After section 121

Insert:

121A Transactions where consideration given to a third party

(1) This section applies if:

(a) a person who later becomes a bankrupt (the transferor ) transfers property to another person (the transferee ); and

(b) the transferee gives some or all of the consideration for the transfer to a person (a third party ) other than the transferor.

(2) Sections 120 and 121 apply as if the giving of the consideration to the third party were a transfer by the transferor of the property constituting the consideration.

(3) If the giving of the consideration to the third party is void against the trustee in the transferor's bankruptcy under section 120 or 121, the trustee has the same rights to recover the property constituting the consideration as the trustee would have if the giving of the consideration had actually been a transfer by the transferor of the property constituting the consideration.