Section 214 of Insolvency Act CAP 53: How bankruptcy trustee is to use repayment of bankrupt's contribution to property
(1) The bankruptcy trustee shall apply—
(a) the money repaid under section 212 by the recipient of a contribution by the bankrupt to property; or
(b) the proceeds of sale of that property, by taking the steps specified in subsection (2) in the order specified in that subsection.
(2) The steps to be taken by the bankruptcy trustee are as follows:
Step 1: The bankruptcy trustee shall keep as much of the proceeds as the bankruptcy trustee needs, when added to the other assets in the bankrupt's estate, to pay the creditors in full (including interest);
Step 2: If there is a surplus after the creditors have been paid in full, the bankruptcy trustee shall pay as much of the surplus to the recipient of the property to which the bankrupt has contributed as was repaid under section 212;
Step 3: The bankruptcy trustee may not pay anything to the bankrupt without having taken steps 1 and 2.
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- Section 215 - Interpretation: Division 20
(1) For the purposes of this Division, a creditor's claim is a document that a creditor submits to the bankruptcy trustee for the purpose of proving the debt.
(2) A debt is proved when it is allowed...
- Section 216 - What debts are provable debts
(1) For the purpose of this Division, a provable debt is a debt or liability that the bankrupt owes— (a) at the commencement of the bankruptcy; or
(b) after that commencement but before discharge,...
- Section 217 - Procedure for proving debt: creditor to submit claim form
(1) A creditor (including a creditor who has a preferential claim) who wishes to claim in the bankruptcy shall submit a creditor's claim to the bankruptcy trustee before the deadline for submitting...
- Section 218 - Bankruptcy trustee required to examine creditor's claim
(1) The bankruptcy trustee shall examine each creditor's claim and the grounds of the debt, unless of the opinion that no dividend will be paid to creditors.
(2) As soon as practicable after...
- Section 219 - Bankruptcy trustee to give creditor notice of grounds of rejection
As soon as practicable after rejecting a creditor's claim, or a part of it, the bankruptcy trustee shall give the creditor a notice rejecting the claim or part and specifying the grounds for the...
- Section 220 - Bankruptcy trustee's power to obtain evidence of debt
(1) The bankruptcy trustee may summon for examination, and examine (on oath or otherwise), any of the following persons—
(a) a person who has submitted a creditor's claim;
(b) a person who has made...
- Section 221 - Notice by bankrupt or creditor to bankruptcy trustee to allow or reject creditor's claim
(1) The bankrupt or any creditor may give the bankruptcy trustee notice to allow or reject a creditor's claim.
(2) It the bankruptcy trustee has not made a decision allowing or rejecting the...
- Section 222 - Court may cancel creditor's claim
(1) The Official Receiver, the bankrupt or a creditor may make an application to the Court for an order under subsection (2) on the ground that the bankruptcy trustee improperly allowed a creditor's...
- Section 223 - Power of court to quash or vary bankruptcy trustee's decision rejecting creditor's claim
(1)A creditor whose claim has been rejected by the bankruptcy trustee may apply to the Court to make an order under subsection (3).
(2)An application can be made only within twenty-one days after the...
- Section 224 - Parties to proceedings relating to creditor's claim
(1) This section applies to an application made under section 221, 222 or 223.
(2) If the applicant is not the bankruptcy trustee, the applicant shall serve a copy of the application on the...
- Section 225 - Court may make order as to costs
On the hearing of an application made under section 221, 222 or 223, the Court may, if it considers it appropriate to do so, make an order—
(a) directing specified costs of a creditor to be added to...
- Section 226 - Secured creditor’s options in relation to property that is subject to a charge
(1) If the property of a bankrupt is subject to a charge, the creditor who holds the charge may choose an option specified in subsection (2).
(2) The options are as follows—
(a) Option 1: to realise...
- Section 227 - Power of Court to order disposal of property that is subject to a charge
(1) If property of a bankrupt is subject to a security, the bankruptcy trustee may make an application to the Court for an order under subsection (2).
(2) On the hearing of an application made under...
- Section 228 - Realisation of property that is subject to a security
(1) A creditor who realises property that is subject to a charge may prove as an unsecured creditor for any balance due after deducting the net amount realised.
(2) However, subsection (1) does not...
- Section 229 - Valuation of charge held by creditor and claim for balance due
This section applies if a creditor who holds a charge or security right over a bankrupt's property has the property valued and seeks to prove as an unsecured creditor for the balance due after...
- Section 230 - Offence for secured creditor to make false claim
(1) A person who—
(a) makes, or authorises the making of, a claim under section 229 (1) knowing it to be false or misleading; or
(b) omits, or authorises the omission of, any matter from a claim...
- Section 231 - Bankruptcy trustee's powers when secured creditor values property subject to charge and proves for balance
(1) If a creditor who holds a charge or security right over property of a bankrupt values the property and seeks to prove for the balance due, the bankruptcy trustee shall—
(a) accept the valuation...
- Section 232 - Secured creditor who surrenders charge may with approval of the Court withdraw claim or submit a new claim
(1) This section applies to a creditor who has surrendered a charge under option 3 in section 226(2) or is taken to have surrendered the charge under section 226(4).
(2) The creditor may, with the...
- Section 233 - Bankruptcy trustee may estimate amount of uncertain creditor's claim
If a creditor's claim is subject to a contingency or is for damages, or if, for some other reason, the amount of the claim is uncertain, the bankruptcy trustee may estimate the amount of the claim.
- Section 234 - Application to the Court to determine amount of uncertain creditor's claim
(1) If the bankruptcy trustee—
(a) chooses not to estimate the amount of a creditor's claim in accordance with section 233; or
(b) has estimated the amount of the claim but the creditor is...
- Section 235 - Creditor's claim payable six months or more after commencement of bankruptcy
(1) A creditor's claim that would, but for the bankruptcy, be payable six months or more after the commencement of the bankruptcy is taken to be a claim for the present value of the debt.
(2) The...
- Section 236 - Bankruptcy trustee's duty when mutual dealings have occurred between the bankrupt and other persons
If there have been mutual credits, mutual debts or other mutual dealings between a bankrupt and another person, the bankruptcy trustee shall—
(a) take an account of what is due from the one party to...
- Section 237 - Creditor may claim pre-bankruptcy interest
A creditor may claim interest up to the date on which the bankruptcy commences—
(a) in the case of contract debt interest, at the rate specified in the contract that provides for interest on the...
- Section 238 - Post-bankruptcy interest payable at prescribed rate if surplus remains
(1) The bankruptcy trustee shall pay interest on all allowed creditors' claims at the prescribed rate if surplus assets remain after the bankruptcy trustee has paid the claims.
(2) The bankruptcy...
- Section 239 - Additional post-bankruptcy interest on contract or judgment debt if surplus remains
(1) If there is a surplus after the bankruptcy trustee has paid post-bankruptcy interest as provided by section 238, the bankruptcy trustee shall pay additional interest on allowed proofs for a...
- Section 240 - Meaning of prescribed rate for purposes of sections 238 and 239
For the purposes of sections 238 and 239, the prescribed rate of interest is the rate for the time being prescribed by the insolvency regulations for the purposes of those sections.
- Section 241 - Creditor required to deduct trade discounts
A creditor shall deduct from the creditor's claim any trade discount that the creditor would have given a debtor if the debtor had not become bankrupt.
- Section 242 - Secured creditor can prove as unsecured creditor if security is void or partly void
If a creditor's security over assets of the bankrupt is wholly or partly void under a provision of this or any other Act, the creditor may prove as an unsecured creditor— (a) if the security is wholly...
- Section 243 - Judgment creditor may prove for costs
A person who obtained an order for costs against the bankrupt before the commencement of the bankruptcy may prove for the amount of those costs even if that amount is not fixed until after that...
- Section 244 - Company may prove for unpaid calls
(1) If a bankrupt is, at the commencement of the bankruptcy, a shareholder of a company (not being a company that is in liquidation), the company may prove for—
(a) the amount of unpaid calls on the...
- Section 245 - When guarantor for bankrupt may prove claim
If, in relation to a bankruptcy—
(a) a person is, at the commencement of the bankruptcy, a guarantor of, or is otherwise liable for a debt of, the bankrupt; and
(b) the person discharges the debt or...
- Section 246 - Interpretation: Division 21
In this Division, "preferential claim" means a claim in respect of a debt listed in paragraphs 2, 3 or 4 of the Second Schedule.
- Section 247 - Preferential debts: priority of debts
(1) For the purpose of this Act, a bankrupt's preferential debts are those specified in paragraphs 2 to 4 of the Second Schedule and are payable as provided by that Schedule in priority to the...
- Section 248 - Priority ranking of debts owed to bankrupt's spouse
(1) This section applies to bankruptcy debts owed in respect of credit provided by a person who was the bankrupt's spouse at the commencement of the bankruptcy and so applies even if the person was...
- Section 249 - Person who makes payment on account of preferential creditor to be subrogated to the rights of that creditor
If a payment has been made to a person on account of a preferential creditor out of money advanced by another person for that purpose, the other person has, in the bankruptcy, the same right of...
- Section 250 - Priority given to landlord or other person who distrains on goods and effects of bankrupt
(1) If a landlord or other person has distrained on goods or effects of the bankrupt during the thirty day period before the bankruptcy commenced, the preferential claims are a first charge on the...
- Section 251 - Creditors to have priority over creditors of joint bankrupt
If a bankrupt is a partner of a firm, any creditor to whom the bankrupt is indebted jointly with the other partners of the firm is not entitled to receive money obtained from the realisation of the...
- Section 252 - Final distribution of bankrupt's estate
(1) On realising the bankrupt's estate or so much of it as can be realised without needlessly protracting the bankruptcy trusteeship, the bankruptcy trustee shall give notice either—
(a) of an...
- Section 253 - Final meeting of creditors
(1) Subject to this section, if—
(a) it appears to the bankruptcy trustee that the administration of the bankrupt's estate in accordance with this Division is for practical purposes complete;...
- Section 254 - Automatic discharge three years after bankrupt lodges statement of financial position
(1) A bankrupt is automatically discharged from bankruptcy three years after the bankrupt lodged a statement of the bankrupt's financial position in accordance with section 50, but may apply to be...
- Section 255 - Effect of automatic discharge
The automatic discharge of the bankrupt has the same effect as if the Court made an order for the bankrupt's discharge.
- Section 256 - Right of creditor to object to automatic discharge
(1) The bankruptcy trustee, the Official Receiver (if not the bankruptcy trustee) or, with the approval of the Court, a creditor may object to a bankrupt's automatic discharge.
(2) An objection has...
- Section 257 - Objection can be withdrawn
(1) An objection to the automatic discharge of the bankrupt may be withdrawn in the manner prescribed by the insolvency regulations.
(2) A bankrupt is automatically discharged on the withdrawal of...
- Section 258 - Bankrupt may apply for early discharge
(1) A bankrupt may at any time apply to the Court for an order of discharge from bankruptcy.
(2) However, if the Court has previously refused an application by the bankrupt for a discharge, and has...
- Section 259 - When bankrupt is to be publicly examined before the Court concerning discharge
(1) The bankruptcy trustee shall summon the bankrupt to be publicly examined before the Court concerning the bankrupt's discharge if—
(a) the bankruptcy trustee or a creditor has objected to the...
- Section 260 - Bankruptcy trustee to lodge report with the Court in specified circumstances
(1) The bankruptcy trustee shall prepare a report and lodge it with the Court when—
(a) the bankrupt has applied under section 258 for a discharge; or
(b) the bankruptcy trustee has summoned the...
- Section 261 - When creditor required to give notice of opposition to discharge
(1) A creditor shall give to the bankruptcy trustee and the bankrupt a notice that complies with subsection (2) if the creditor intends to oppose the bankrupt's discharge on a ground that is not...
- Section 262 - Power of the Court to grant or refuse discharge
(1) On hearing an application made under section 258, or the holding of a public examination of the bankrupt under section 259, the Court may— (a) immediately discharge the bankrupt;
(b) discharge...
- Section 263 - Court may restrict bankrupt from engaging in business after discharge
(1) On making an order of discharge or at any earlier time, the Court may prohibit the bankrupt from doing after discharge all or any of the following without the Court's approval—
(a) entering into,...
- Section 264 - Court may quash order discharging bankrupt
(1) The bankruptcy trustee or a creditor of the bankrupt may make an application to the Court for an order under subsection (2).
(2) On the hearing of an application made under subsection (1), the...