76. Effect of bankruptcy order
Feedback & supportLast amended by an amending law of 2009.
On the making of a bankruptcy order —
the property of the bankrupt shall —
vest in the Official Assignee without any further conveyance, assignment or transfer; and
become divisible among his creditors;
the Official Assignee shall be constituted receiver of the bankrupt’s property; and
unless otherwise provided by this Act —
no creditor to whom the bankrupt is indebted in respect of any debt provable in bankruptcy shall have any remedy against the person or property of the bankrupt in respect of that debt; and
no action or proceedings shall be proceeded with or commenced against the bankrupt in respect of that debt,except by leave of the court and in accordance with such terms as the court may impose.
Where a bankruptcy order is made against a firm, the order shall operate as if it were a bankruptcy order made against each of the persons who, at the time of the order, is a partner in the firm.
firm
“firm” means an unincorporated body of individuals carrying on business in partnership with a view to profit;
This section shall not affect the right of any secured creditor to realise or otherwise deal with his security in the same manner as he would have been entitled to realise or deal with it if this section had not been enacted.
secured creditor
“secured creditor”, in relation to a debtor, means a person holding a mortgage, pledge, charge or lien on or against the property of the debtor or any part thereof as security for a debt due to him from the debtor;
Notwithstanding subsection (3) and section 94, no secured creditor shall be entitled to any interest in respect of his debt after the making of a bankruptcy order if he does not realise his security within 6 months from the date of the bankruptcy order or such further period as the Official Assignee may determine.
debt
“debt” means any debt, or any liability to pay money, which is unsecured, present, certain, and of an amount that is fixed or liquidated;