Commonwealth Consolidated Acts

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Annulment on payment of debts

  (1)   If the trustee is satisfied that all the bankrupt's debts have been paid in full, the bankruptcy is annulled, by force of this subsection, on the date on which the last such payment was made.

  (1A)   In determining whether there has been full payment of a debt that bears interest, the interest must be reckoned up to and including the date on which the debt (including interest) is paid.

  (2)   The trustee must, before the end of the period of 2 days beginning on that date, give to the Official Receiver a written certificate setting out the former bankrupt's name and bankruptcy number and the date of the annulment.

Penalty:   5 penalty units.

Note:   See also section   277B (about infringement notices).

  (3)   Subsection   (2) is an offence of strict liability.

Note:   For strict liability, see section   6.1 of the Criminal Code .

  (4)   For the purposes of this section, if a debt has been proved by a creditor but the creditor cannot be found or cannot be identified, the debt may be paid to the Official Receiver and, if so paid, is taken for the purposes of this section to have been paid in full to the creditor.

  (4A)   Money received by the Official Receiver under subsection   (4) is received on behalf of the Commonwealth.

  (5)   If money is paid to the Official Receiver under subsection   (4), the provisions of subsections   254(3) to (9) apply in relation to that money as if it had been paid to the Commonwealth by a trustee under subsection   254(2).

  (6)   In this section:

"bankrupt's debts" means all debts that have been proved in the bankruptcy and includes interest payable on such of those debts as bear interest, and the costs, charges and expenses of the administration of the bankruptcy, including the remuneration and expenses of the trustee.

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