The Insolvency Amendment Act 2001 has made changes to the provisions of the Insolvency Act dealing with property of a bankrupt.

The Amendment Act gives power to the Official Assignee to order a bankrupt
to make contributions to the payment of his or her debts. Previously this
power could only be exercised by the Court. The Act allows the bankrupt or
any creditor to apply to the Court to vary an order made by the Assignee.
While previously the Official Assignee or a creditor could apply to the Court for an order for contribution, the Amendment Act removes the right of individual creditors to seek an order for contribution - creditors can only apply to the Court to vary an existing order, but not if the Official Assignee has failed or refused to make an order in the first place.

The Amendment Act also extends the prohibition against undischarged
bankrupts working for family members to a prohibition against employment by
companies or trusts, managed or controlled by relatives.

This article is intended as a first point of reference and should not be relied on as a substitute for professional advice. Specialist legal advice should always be sought in relation to any particular circumstances and no liability will be accepted for any losses incurred by those relying solely
on this article.

Copyright Phillips Fox, November 2001

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