25. Part VII of the Bankruptcy Act is amended by inserting, immediately after section 86, the following sub‑heading and sections:“Monthly contribution and target contribution |
Determination of monthly contribution and target contribution |
86A.—(1) The Official Assignee must, not later than 2 months after the administration date of a bankruptcy —(a) | determine the bankrupt’s monthly contribution and target contribution in respect of the bankruptcy; and | (b) | serve a notice of the determination on —(i) | the bankrupt; | (ii) | every creditor who has filed a proof of debt in respect of the bankruptcy; and | (iii) | in a case where the determination is made before the expiry of the period referred to in section 88A(2), every creditor who is mentioned in the statement of the bankrupt’s affairs but has not filed a proof of debt. |
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(2) For the purposes of determining the monthly contribution referred to in subsection (1)(a), the Official Assignee must take into account —(a) | the current monthly income of the bankrupt; | (b) | the extent to which the current monthly income of the bankrupt’s spouse may contribute to the maintenance of the bankrupt’s family; | (c) | the monthly income that the bankrupt may reasonably be expected to earn over the duration of the bankruptcy, taking into account —(i) | the previous and current monthly income of the bankrupt; | (ii) | the educational and vocational qualifications, age and work experience of the bankrupt; | (iii) | the range of monthly income earned by persons who are employed in occupations, positions or roles similar to that in which the bankrupt is, or can be expected to be, employed; | (iv) | the effect which the bankruptcy may have on the bankrupt’s earning capacity or other income; | (v) | the prevailing economic conditions; and | (vi) | the period of time during which the bankrupt is likely to be capable of earning a meaningful income; and |
| (d) | the reasonable expenses for the maintenance of the bankrupt and the bankrupt’s family. |
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(3) Where the determination under subsection (1) is made by a trustee in bankruptcy appointed under section 33 to administer the bankruptcy, the trustee must also serve the notice of the determination, together with an explanation of the basis for making the determination, on the Official Assignee. |
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Review by court of determination of monthly contribution and target contribution |
86B.—(1) If a bankrupt or any creditor of the bankrupt is dissatisfied with the monthly contribution and target contribution determined under section 86A, the bankrupt or the creditor (as the case may be) may, within 21 days after the service of the notice of the determination, apply to the court to review the determination.(2) The court may, in any particular case, extend the period for the making of the application under subsection (1), if the court is satisfied that it is just to do so. |
(3) An application under subsection (1) must be served, within 3 days after the date on which the application is filed, on —(a) | the Official Assignee, or the trustee in bankruptcy appointed under section 33, whose determination under section 86A is the subject of the application; and | (b) | the bankrupt, unless the application was made by the bankrupt. |
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(4) Upon being served with the application under subsection (3)(a), the Official Assignee or the trustee in bankruptcy (as the case may be) must forthwith give notice of the application to every person on whom the notice of the determination was served under section 86A(1)(b)(ii) and (iii) and (3) (except, where the application was made by a creditor, that creditor). |
(5) On hearing an application under subsection (1), the court may —(a) | confirm or vary the monthly contribution and target contribution in respect of which the application is brought; or | (b) | give such directions to the Official Assignee or trustee in bankruptcy (as the case may be), or make such order, as the court may think fit. |
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(6) Unless the court orders otherwise, a variation under subsection (5)(a) of the monthly contribution and target contribution takes effect on the date of the order. |
(7) A variation of the monthly contribution and target contribution made under subsection (5)(a) does not affect any payment made by the bankrupt in respect of the monthly contribution or target contribution prior to the date of the variation. |
(8) The Official Assignee or trustee in bankruptcy (as the case may be) must, within 14 days after the variation of the monthly contribution and target contribution under subsection (5)(a), serve a notice of the variation order on —(a) | the bankrupt; | (b) | every creditor who has filed a proof of debt in respect of the bankruptcy; and | (c) | in a case where the variation is made before the expiry of the period referred to in section 88A(2), every creditor who is mentioned in the statement of the bankrupt’s affairs but who has not filed a proof of debt. |
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Power of court to vary monthly contribution and target contribution |
86C.—(1) Where the court is satisfied, on the application of the Official Assignee or the trustee in bankruptcy appointed under section 33, a bankrupt or any creditor of the bankrupt, that any of the conditions described in subsection (2) apply, the court may make such order as it thinks fit to vary the bankrupt’s monthly contribution and target contribution.(2) The conditions referred to in subsection (1) are as follows:(a) | before the determination of the monthly contribution and target contribution under section 86A was made, the bankrupt concealed from, or failed to disclose to, the Official Assignee or trustee in bankruptcy (as the case may be) information which the bankrupt knows or ought reasonably to know would have a material impact on the determination; | (b) | information which would have a material impact on the determination of the bankrupt’s monthly contribution and target contribution under section 86A —(i) | was not available to the bankrupt before the making of that determination; and | (ii) | is now available; |
| (c) | it is otherwise just and equitable to vary the monthly contribution and target contribution determined under section 86A. |
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(3) An application under subsection (1) must be served, within 3 days after the date of filing, on —(a) | the Official Assignee, or the trustee in bankruptcy appointed under section 33, whose determination under section 86A is the subject of the application, unless the application was made by the Official Assignee or the trustee (as the case may be); and | (b) | the bankrupt, unless the application was made by the bankrupt. |
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(4) Upon —(a) | the filing of an application under subsection (1) by the Official Assignee or trustee in bankruptcy (as the case may be); or | (b) | being served with an application under subsection (3)(a), where the application is not filed by the Official Assignee or trustee in bankruptcy (as the case may be), |
the Official Assignee or trustee in bankruptcy (as the case may be) must forthwith give notice of the application to every person on whom the notice of the determination was served under section 86A(1)(b)(ii) and (iii) and (3) (except, where the application was made by a creditor, that creditor). |
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(5) Unless the court orders otherwise, a variation under subsection (1) of the monthly contribution and target contribution takes effect on the date of the order. |
(6) A variation of the monthly contribution and target contribution made under subsection (1) does not affect any payments made by the bankrupt in respect of the monthly contribution or target contribution prior to the date of the variation. |
(7) The Official Assignee must, within 14 days after the variation of the monthly contribution and target contribution under subsection (1), serve a notice of the variation order on —(a) | the bankrupt; | (b) | every creditor who has filed a proof of debt; and | (c) | in a case where the variation is made before the expiry of the period referred to in section 88A(2), every creditor who is mentioned in the statement of the bankrupt’s affairs but who has not filed a proof of debt. |
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Power of Official Assignee to reduce monthly contribution and target contribution |
86D.—(1) The Official Assignee may, on the application of a bankrupt, issue a certificate reducing the bankrupt’s monthly contribution and target contribution to such extent as the Official Assignee thinks fit, if the Official Assignee is satisfied that one or more of the conditions described in subsection (2) arose after the determination of the monthly contribution and target contribution.(2) The conditions referred to in subsection (1) are as follows:(a) | the reasonable expenses for the maintenance of the bankrupt’s family have increased as a result of an increase in the number of the members of the bankrupt’s family; | (b) | the contribution by the bankrupt’s spouse to the maintenance of the bankrupt’s family has been substantially reduced as a result of a substantial reduction in the monthly income earned by the bankrupt’s spouse, and that reduction in income is not likely to be transient in nature; | (c) | the bankrupt is unable to pay the monthly contribution in full due to the personal circumstances of the bankrupt, including but not limited to a debilitating illness, which resulted in a substantial reduction in the bankrupt’s income, and that reduction in income is not likely to be transient in nature. |
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(3) A certificate issued under subsection (1) takes effect on the date it is issued. |
(4) A certificate issued under subsection (1) does not affect any payments made by the bankrupt in respect of the monthly contribution or target contribution prior to the date of issue of the certificate. |
(5) The Official Assignee must, within 14 days after the issue of a certificate under subsection (1), serve a notice of the issue of the certificate on —(a) | the bankrupt; | (b) | every creditor who has filed a proof of debt; and | (c) | in a case where the reduction is made before the expiry of the period referred to in section 88A(2), every creditor who is mentioned in the statement of the bankrupt’s affairs but who has not filed a proof of debt. |
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(6) Where the bankruptcy is being administered by a trustee in bankruptcy, and the certificate under subsection (1) was issued by the trustee, the trustee must also serve the notice of the issue of the certificate, together with an explanation of the basis for issuing the certificate, on the Official Assignee. |
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Review by court of decision of Official Assignee under section 86D |
86E.—(1) Where a bankrupt or any creditor of the bankrupt is dissatisfied with the decision of the Official Assignee under section 86D(1), the bankrupt or the creditor (as the case may be) may, within 21 days after the service of the notice referred to in section 86D(5), apply to the court to review the decision.(2) The court may, in any particular case, extend the period for the making of an application under subsection (1) if the court is satisfied that it is just to do so. |
(3) An application under subsection (1) must be served, within 3 days after the date of filing, on the Official Assignee, who must forthwith —(a) | serve a copy of the application on the bankrupt, unless the application was made by the bankrupt; and | (b) | give notice of the application to every creditor who was, under section 86D(5)(b) or (c), entitled to service of the notice referred to in section 86D(5) (except, where the application was made by a creditor, that creditor). |
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(4) On hearing an application under subsection (1), the court may —(a) | confirm, vary or cancel the certificate under section 86D(1) in respect of which the application is brought; or | (b) | give such directions to the Official Assignee, or make such order, as the court may think fit. |
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(5) Unless the court orders otherwise, a variation made under subsection (4)(a) of the certificate under section 86D(1) takes effect from the date of issue of the certificate. |
(6) A variation of the certificate does not affect any payment made by the bankrupt, prior to the date of the variation, in respect of any reduced monthly contribution pursuant to the certificate. |
(7) The Official Assignee must, within 14 days after a variation under subsection (4)(a) of the certificate under section 86D(1), serve a notice of the variation order on every person who was, under section 86D(5) or (6), entitled to service of the notice of the issue of the certificate. |
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Review by Official Assignee of administration by trustee in bankruptcy |
86F.—(1) A trustee in bankruptcy must, not later than one month after each relevant anniversary of the administration date for the bankruptcy, submit to the Official Assignee a report (in such form as may be prescribed) of the trustee’s administration of the bankruptcy.(2) The report under subsection (1) is to contain particulars of —(a) | the total amount of debts owed to creditors who have filed their proof of debt; | (b) | the property of the bankrupt comprised in the bankruptcy estate and the status of the realisation of such property; | (c) | the monthly contribution and target contribution for the bankruptcy; | (d) | the payments that have been made by the bankrupt to the bankruptcy estate; and | (e) | any other payments that have been made to the bankruptcy estate. |
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(3) Upon receipt of a report under subsection (1), if the Official Assignee is of the opinion that the monthly contribution and target contribution determined by the trustee are excessive, the Official Assignee may issue a certificate reducing the monthly contribution and target contribution. |
(4) In this section, “relevant anniversary”, in relation to the administration date for a bankruptcy, means —(a) | in any case where the bankruptcy is a repeat bankruptcy, the seventh and every subsequent anniversary of the administration date; and | (b) | in any other case, the fifth and every subsequent anniversary of the administration date.”. |
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