Section 228 of Insolvency Act CAP 53: 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 apply if the bankruptcy trustee has accepted a valuation and creditor's claim under section 231.
(3) A secured creditor who realises property subject to a charge shall account to the bankruptcy trustee for any surplus remaining after the following amounts have been paid— (a) the amount of the debt;
(b) interest payable on the debt up to the time when it is paid;
(c) any proper payments to the holder of any other charge over the property.
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- 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...
- Section 265 - Effect of quashing order discharging bankrupt from bankruptcy
(1) The quashing of a discharge does not affect the rights or remedies that a person other than the bankrupt would have had if the discharge had not been quashed.
(2) It property acquired by the...
- Section 266 - Bankrupt may apply for absolute discharge on ground that conditions of discharge are too onerous
(1) A bankrupt may apply to the Court for an absolute discharge even though the bankrupt is not able to comply with any or all of the conditions of the bankrupt's discharge.
(2) The Court may...
- Section 267 - Debts from which bankrupt is released on discharge
(1) On being discharged, a bankrupt is released from all debts provable in the bankruptcy except those listed in subsection (2).
(2) The debts from which the bankrupt is not released are the...
- Section 268 - Discharge to be conclusive evidence of bankruptcy and the validity of bankruptcy proceedings
A discharge of a bankrupt from bankruptcy is conclusive evidence of the bankruptcy and of the validity of the proceedings in course of the bankruptcy.
- Section 269 - Discharge not to release partners of bankrupt and others
The discharge of a bankrupt does not release a person who, at the commencement of the bankruptcy, was
—
(a) a business partner of the bankrupt;
(b) a co-trustee with the bankrupt;
(c) jointly...
- Section 270 - Discharged bankrupt to assist bankruptcy trustee
(1) A person who is discharged from bankruptcy shall assist the bankruptcy trustee, as required by the Court or the bankruptcy trustee, in the realisation and distribution of the property of the...
- Section 271 - Official Receiver to record in public register decision of the Court refusing to discharge bankrupt, etc.
lf the Court refuses to discharge a bankrupt or makes an order discharging the bankrupt but suspends the discharge, the Official Receiver shall record that information in the relevant public register...
- Section 272 - Court may annul bankruptcy order in certain circumstance
(1) The Official Receiver or any other person claiming to have a legitimate interest in the matter may make an application to the Court for an order under subsection (2).
(2) On the hearing of an...
- Section 273 - When Official Receiver may annul bankruptcy order
(1) The Official Receiver may annul a bankruptcy order on any of the grounds specified in subsection
(2), but only if the order was made on a debtor's application.
(2) The grounds for annulment by...
- Section 274 - Effect of annulment of bankruptcy order
(1) On annulment of a bankruptcy order, all property of the bankrupt vested in the Official Receiver on bankruptcy and not sold or otherwise disposed of by the Official Receiver revests in the...
- Section 275 - Interpretation: Division 24
In this Division—
"confirming resolution" means a special resolution passed by a bankrupt's creditors in accordance with section 276 confirming a preliminary resolution;
"preliminary resolution"...
- Section 276 - Creditors may accept composition by passing preliminary resolution
(1) The creditors of a bankrupt may accept a composition in satisfaction of the debts due to them from the bankrupt by passing a special resolution that contains the terms of the composition.
(2) If...
- Section 277 - Composition not effective unless approved by confirming resolution
(1) A composition is ineffective only when creditors have passed a special resolution confirming preliminary resolution.
(2) In the confirming resolution, the creditors may vary the terms of the...
- Section 278 - Compositions with members of partnership
(1) If members of a partnership have been adjudged bankrupt, the joint creditors and each class of separate creditors can make separate compositions.
(2) lf subsection (1) applies, the majorities of...