LAWS107 Chapter 9: week 9
Document Summary
The property available for distribution to the creditors includes all property that belonged to a bankrupt at the commencement of the bankruptcy : s 116(1) At the commencement of the bankruptcy is deined in s 115(1a) The bankruptcy of a person as a result of the acceptance of a debtor"s petition is taken to have relation back to a time set out in the legislation(s 115(2)). Limitations: the operation of the doctrine of relation back is limited by provisions which protect bona ide transactions entered into with a debtor prior to bankruptcy. Property belonging to the bankrupt at the commencement of the bankruptcy, and property acquired after the commencement of the bankruptcy and before discharge, is available for distribution among the bankrupt"s creditors. Section 116 of the act sets out classes of property which are not available for distribution amongst creditors of a bankrupt. Possession and realisation of property by the trustee.
