Bankruptcy Act of 1997
The Australian Parliament passed two related bankruptcy laws in 1997, both of which were amendments to the comprehensive Bankruptcy Act of 1966. One of the acts deals with estate charges and the other one deals with registration charges. Both acts are fairly small, dealing only with these new charges. In addition, the act dealing with registration charges was voided in 2006 by an amendment to the 1966 Bankruptcy Act.
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Estate Charges Act (Function)
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The first of the two Bankruptcy Acts of 1997 was the Estate Charges Act, passed on March 13. The primary purpose of the Estate Charges Act is to clarify how much a trustee (an individual paying on the behalf of someone bankrupt) must pay in the form of interest, as originally established in the 1966 Bankruptcy Act. The Act establishes charge periods of 21 days and also sets interest rates equal to eight percent of the amount that the charge is payable within the charge period.
Estate Charges Act (Clarification)
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The Estate Charges Act clarifies that the charges owed to the bank on an estate by a trustee may include certain deductions. The amount that must be paid is the sum of the amount paid by the trustee on the behalf of creditors and any amount which the Commonwealth paid on behalf of them, plus the interest. However, allowable deductions include any amount already paid to a secured creditor or any amount paid during the charge period on behalf of the bankrupt individual for whom they are acting as a trustee.
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Registration Charges Act (Function)
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The Registration Charges Act is the second bankruptcy acts passed in 1997, and it became law on April 14. This Act primarily deals with fees associated with registering as a trustee. The Act mandates a $1,000 fee to file as a trustee, a $1,000 fee to extend one's length of time as a trustee past 10 years and a $500 fee to either change or remove an individual who is currently acting as a trustee.
Registration Charges Act (History)
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The Registration Charges Act was repealed on July 1, 2006 with the passage of the Bankruptcy Legislation Amendment (Fees and Charges) Act of 2006. This new Act makes it so that, as of 2006, there is no registration fee to declare oneself as a trustee for a bankrupt individual. The Registration Charges Act also includes several other smaller amendments to the overall Bankruptcy Act, such as changing the overall charge period from the Estate Charges Act to a period of one financial year instead of six months.
Bankruptcy Act 1966 (Significance)
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Both the Estate Charges Act and Registration Charges Act are minor amendments to the overall Australian bankruptcy code, as established by the Bankruptcy Act of 1966. The Bankruptcy Act of 1966 is large, with 316 sections and numerous minor amendments throughout the years. The Act's primary purpose is to write out in express detail all laws involving bankruptcy in Australia, including how much the bankrupt individual must pay to his creditors, how much time said individual has to pay and the role of trustees in the bankruptcy proceedings.
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References
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