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

Schedule 1   Amendments

Bankruptcy Act 1966

7   Subsection 120(3)

Repeal the subsection, substitute:

(3) Despite subsection (1), a transfer is not void against the trustee if:

(a) in the case of a transfer to a related entity of the transferor:

(i) the transfer took place more than 4 years before the commencement of the bankruptcy; and

(ii) the transferee proves that, at the time of the transfer, the transferor was solvent; or

(b) in any other case:

(i) the transfer took place more than 2 years before the commencement of the bankruptcy; and

(ii) the transferee proves that, at the time of the transfer, the transferor was solvent.