1 Title

2 Commencement

3 Interpretation

4 Rights and powers under other Acts not affected

5 Act binds the Crown

6 Corporations and other entities not subject to Act

7 Nature of bankruptcy

8 Alternatives to bankruptcy

9 Introduction to subpart 2

10 Adjudication

11 Adjudication by court

12 Adjudication on debtor's initiative

13 When creditor may apply for debtor's adjudication

14 Application by secured creditor

15 Court's permission required for withdrawal of application

16 Requirement of act of bankruptcy

17 Failure to comply with bankruptcy notice

18 Disposition of property to trustee for benefit of creditors

19 Fraud or intent to prefer a creditor

20 Departure from New Zealand

21 Avoidance of creditors

22 Notice of suspension of debts

23 Admission to creditors of insolvency

24 Possession under execution process

25 Writ of sale

26 Return that sufficient goods not found under execution process

27 Removal or concealment of property

28 Unsatisfied judgment for non-payment of trust money

29 Form of bankruptcy notice

30 Effect of overstatement of amount owing

31 Creditor's execution process must not be issued or continued

32 Execution processes by other creditors

33 Execution process issued by another court

34 No restriction on execution process if application for adjudication withdrawn or dismissed

35 Meaning of execution process

36 Court may adjudicate debtor bankrupt

37 Court may refuse adjudication

38 Court may halt application

39 Orders if more than 1 application

40 Orders if more than 1 debtor

41 Order that disposition or proposal not act of bankruptcy

42 Halt or refusal of application when judgment under appeal

43 Court may halt application while underlying debt determined

44 Substitution of creditor

45 When debtor may file application

46 Debtor must first file statement of affairs

47 Debtor automatically adjudicated bankrupt

48 Debtors' joint application

49 Steps for filing debtor's application

50 Application for appointment of Assignee as receiver

51 Additional orders after receiver's appointment

52 Appointment of Assignee as receiver and manager must be advertised

53 Execution process halted

54 Effect when execution process halted

55 Bankruptcy commences on adjudication

56 Date of adjudication

57 Date and time of adjudication must be recorded

58 Registrar must notify Assignee of adjudication by court

59 Official Assignee must nominate Assignee

60 Presumption that act or transaction entered into or effected after adjudication

61 Adjudication final and binding

62 Public register of discharged and undischarged bankrupts

63 Debtor adjudicated bankrupt called the bankrupt

64 Outline of what happens on adjudication

65 Assignee must advertise adjudication

66 Order that Assignee must not advertise pending appeal or application for annulment

67 Bankrupt must file statement of affairs with Assignee

68 Notice that bankrupt must file statement of affairs

69 Time for filing statement of affairs

70 Bankrupt may file additional or amended statements or answers

71 Assignee must call meeting of creditors

72 Time when meeting must be held

73 Assignee may dispense with first creditors' meeting

74 Notice that first creditors' meeting should not be called

75 Documents to be sent with notice of meeting

76 Effect of adjudication on court proceedings

77 Execution process must not be begun or continued after adjudication advertised

78 Effect of bankrupt's death after adjudication

79 Overview of creditors' role in bankruptcy

80 Types of creditors' meetings

81 Subsequent meetings

82 Meeting and resolution not defective for lack of notice

83 Chairperson

84 Chairperson may adjourn meeting

85 Assignee must report to meeting

86 Attending creditors' meeting

87 Bankrupt may be required to attend and be questioned

88 Attendance by non-creditors

89 Minutes and record of meeting

90 Number of persons for valid meeting

91 Who may represent creditor or bankrupt

92 Voting at meetings

93 Postal and electronic votes

94 Who may vote at creditors' meeting

95 When secured creditor may vote

96 When creditor under bill of exchange or promissory note may vote

97 Person disqualified from voting through preferential effect

98 Creditor of partner

99 Creditors may appoint expert or committee to assist Assignee

100 Creditor's right to inspect documents

101 Status of bankrupt's property on adjudication

102 Status of property acquired during bankruptcy

103 Property vests in replacement Assignee

104 Property held in trust by bankrupt

105 Effect of other laws

106 Court may order that money due to bankrupt is assigned to Assignee

107 Application of section 274 to payments by bankrupt or assignments by court

108 When execution creditor may retain execution proceeds

109 Effect of notice to sheriff of adjudication

110 Sheriff must retain proceeds of execution for 10 working days

111 Purchaser under sale by sheriff acquires good title

112 Court may set aside rights conferred on Assignee

113 Transaction in good faith and for value after adjudication

114 Executions and attachments in good faith

115 When execution or attachment completed for purposes of section 108 or 114

116 Assignee's interest in property passes

117 Assignee may disclaim onerous property

118 Effect of disclaimer

119 Position of person who suffers loss as result of disclaimer

120 Assignee may be required to elect whether to disclaim

121 Liability for rentcharge on bankrupt's land after disclaimer

122 Transmission of interest in land

123 Assignee cannot claim interest in land if bankrupt remains in possession until discharge

124 Assignee may transfer shares and other securities

125 Assignee may disclaim liability under shares

126 Assignee may be required to elect whether to disclaim liability under shares

127 Transfer of shares after disclaimer

128 Company may prove for unpaid calls

129 Meaning of hire purchase terms used in this subpart

130 Restrictions on creditor dealing with consumer goods

131 Assignee's powers in relation to hire-purchase consumer goods

132 Creditor in possession of consumer goods may prove in bankruptcy if Assignee has not exercised powers

133 Creditor may assign consumer goods to Assignee

134 Status of bankrupt's property on second bankruptcy

135 Effect of notice to Assignee of application for adjudication

136 Separate accounts

137 How joint and separate estates must be applied

138 General duty of bankrupt

139 Bankrupt must disclose property acquired before discharge

140 Bankrupt must deliver property to Assignee on demand

141 Bankrupt must take all steps required in relation to property and distribution of proceeds to creditors

142 Bankrupt must give Assignee accounting records and other documents

143 Bankrupt must give Assignee information relating to property

144 Bankrupt must give Assignee information relating to income and expenditure

145 Bankrupt must notify Assignee of change in personal information

146 Bankrupt must give Assignee financial information

147 Bankrupt may be required to contribute to payment of debts

148 Onus of proof if bankrupt defaults in making payment

149 Prohibition of bankrupt entering business

150 Warrant to search for and seize bankrupt's property

151 Seizure of bankrupt's property

152 Bankrupt must vacate land or buildings if required to do so

153 Bankrupt's right to inspect documents

154 No power to recover property or give release or discharge

155 No steps to defeat beneficial interest

156 Bank must notify Assignee of bankrupt's account

157 Assignee may require bank to search account records

158 Bankrupt may retain certain assets

159 Bankrupt may retain certain assets with consent of creditors

160 Retention of assets does not affect rights under charge or hire purchase agreement

161 Retention provisions do not confer rights to other assets

162 Relative or dependant may exercise bankrupt's right to retain assets

163 Assignee may make allowance to bankrupt

164 Assignee may allow bankrupt to retain money

165 Assignee may summon bankrupt and others to be examined

166 Conduct of examination of person summoned by Assignee

167 Expenses of person summoned by Assignee

168 Creditor may inspect record of examination

169 Report of examination must not be published unless court consents

170 Examination provisions also apply when Assignee appointed receiver and manager of debtor's property

171 Assignee may obtain documents

172 No lien over bankrupt's documents and other records

173 Court must hold public examination if Assignee or creditors require

174 Notice of examination

175 Time for holding examination

176 Assignee must file report before examination

177 Conduct of examination

178 Record of examination

179 When examination ends

180 Bankrupt's failure to attend examination

181 Bankrupt's expenses in attending examination

182 Assignee may examine company documents, personnel, and shareholders

183 Meaning of associate

184 No privilege against self-incrimination

185 Statement made by person examined or questioned not generally admissible in criminal proceedings against that person

186 Representation

187 Assignee may continue or disclaim bankrupt's contract

188 Contract terminated by other contracting party

189 Payment of money or delivery of property is good discharge

190 Bankrupt's co-contractor may sue and be sued

191 Lawyers' costs

192 Overview of subpart 7

193 Extension of 2 years and 6 months periods

194 Insolvent transaction may be cancelled

195 Meaning of insolvent transaction

196 Insolvent transaction presumed

197 When series of transactions must be regarded as single transaction

198 Insolvent charge may be cancelled

199 Charge for new consideration or charge in substitution not affected

200 Presumption that bankrupt unable to pay due debts

201 Charge for unpaid purchase price given after sale of property

202 Appropriation of payments by bankrupt to secured creditor

203 Charge agreed before specified period may not be cancelled

204 Insolvent gift within 2 years may be cancelled

205 Insolvent gift within 2 to 5 years may be cancelled if bankrupt unable to pay debts

206 Procedure for cancelling irregular transactions

207 Court may order retransfer of property or payment of value

208 Limits on recovery

209 Recovery by appointee

210 Land Transfer Act 1952 does not limit sections 206 to 209

211 Assignee may recover difference in value

212 When Assignee may recover difference

213 Court may order recipient to pay value to Assignee

214 Court's powers in relation to bankrupt's contribution to recipient's property

215 How Assignee must use repayment of bankrupt's contribution to property

216 Land Transfer Act 1952 does not limit sections 213 to 215

217 Assignee's general powers

218 Assignee must not sell bankrupt's property before first creditors' meeting

219 Title of purchaser from Assignee

220 Obligation to bank and power to invest money

221 Assignee may assign right to sue under this Act

222 Proceedings by Assignee when bankrupt is partner in business partnership

223 Means of giving notice to creditors

224 Assignee's discretion

225 Assignee may apply for directions by court

226 Appeal from Assignee's decision

227 Assignee must keep proper accounting records

228 Assignee's final statement of receipts and payments

229 Auditor-General may audit Assignee's accounts

230 Assignee may return or destroy accounting records

231 Meaning of provable debt

232 What debts are provable debts

233 Creditor must submit creditor's claim form

234 Assignee must examine creditor's claim form

235 Assignee must give creditor notice of grounds of rejection

236 Assignee's power to obtain evidence of debt

237 Notice to Assignee to admit or reject creditor's claim

238 Court may cancel creditor's claim

239 Court may reverse or modify Assignee's decision rejecting creditor's claim

240 Parties to application to court in relation to creditor's claim

241 Which court may hear application in relation to creditor's claim

242 Court may make order as to costs

243 Secured creditor's options in relation to property subject to charge

244 Assignee may require secured creditor to choose option

245 Assignee not required to act in relation to certain property subject to charge

246 Realisation of property subject to security

247 Valuation of charge and proof for balance due

248 False claim by secured creditor

249 Assignee's powers when secured creditor values property subject to charge and proves for balance

250 Secured creditor who surrenders charge may withdraw surrender or submit new creditor's claim

251 Assignee may estimate amount of uncertain creditor's claim

252 Application to court to determine amount of uncertain creditor's claim

253 Creditor's claim payable 6 months or more after adjudication

254 Mutual credit and set-off

255 Definitions relating to set-off under netting agreement

256 Application of set-off under netting agreement

257 Calculation of netted balance

258 Mutuality required for transactions under bilateral netting agreements

259 When mutuality required for transactions under recognised multilateral netting agreements

260 Application of set-off under section 254 to transaction subject to netting agreements

261 Transactions under netting agreement and insolvent transactions

262 Set-off under netting agreement not affected by notice under section 206(2)

263 Disclaimer of onerous property and termination of netting agreement not permitted

264 Pre-adjudication interest

265 Post-adjudication interest at prescribed rate if surplus remains

266 Additional post-adjudication interest on contract or judgment debt if surplus remains

267 Meaning of prescribed rate

268 Creditor must deduct trade discounts

269 Proof when charge void

270 Judgment creditor may prove for costs

271 Company may prove for unpaid calls

272 When guarantor for bankrupt may prove

273 Priority of payments for distribution of bankrupt's assets

274 Priority of payments to preferential creditors

275 Conditions to priority of payments to preferential creditors

276 Provisions concerning preferential payments to employees

277 Subrogation of persons if payment has been made

278 Priority given to person who distrains on goods

279 Creditors to have priority over creditors of joint bankrupt

280 Payment of remaining money to general creditors

281 Payment of surplus to bankrupt

282 Definition of undistributed money

283 Undistributed money to be paid to Public Trust

284 Public Trust to hold undistributed money

285 Public Trust to pay undistributed money to bankruptcy surplus account

286 Application of undistributed money held in bankruptcy surplus account

287 Requisition of Minister required for payment under section 286(c)

288 Approval of Official Assignee required for payment under section 286(d)

289 Matters concerning bankruptcy surplus account

290 Automatic discharge 3 years after bankrupt files statement of affairs

291 Effect of automatic discharge

292 Objection to automatic discharge

293 Objection may be withdrawn

294 Bankrupt may apply for discharge

295 When bankrupt must be examined concerning discharge

296 Assignee's report

297 When creditor must give notice of opposition to discharge

298 Court may grant or refuse discharge

299 Court may restrict bankrupt from engaging in business after discharge

300 Court may reverse order of discharge

301 Grounds for reversing discharge

302 Effect of reversal of discharge

303 Bankrupt may apply for absolute discharge if conditions of discharge too onerous

304 Debts from which bankrupt is released on discharge

305 Discharge conclusive evidence of bankruptcy

306 Discharge does not release partners and others

307 Discharged bankrupt must assist Assignee

308 Information regarding bankrupt's discharge must be contained in public register maintained under section 62

309 Court may annul adjudication

310 When Assignee may annul adjudication

311 Effect of annulment

312 Creditors may accept composition by passing preliminary resolution

313 Confirming resolution

314 Compositions with members of partnership

315 Court must approve composition

316 Procedure for court approval of composition

317 Deed of composition

318 Effect of deed

319 Bankrupt remains liable for unpaid balances of certain debts

320 Deadlines for steps to approve composition and execute deed

321 Procedure following court approval of composition

322 Enforcement of composition

323 Court's exclusive jurisdiction

324 Law and practice in bankruptcy applies to deed

325 Meaning of debt, etc

326 Insolvent may make proposal

327 Form of proposal

328 Proposal must be filed in court

329 Provisional trustee

330 Provisional trustee must call meeting of creditors

331 Procedure at meeting of creditors

332 Who may represent creditors

333 Court must approve proposal

334 Effect of court approval

335 Creditor must not take enforcement steps without court's permission

336 Duty of insolvent

337 Duties of trustee

338 Trustee must file 6-monthly summary of receipts and payments

339 Cancellation or variation of proposal

340 Summary instalment order

341 Who may apply for order

342 Form of application

343 Assignee may make summary instalment order

344 Additional orders

345 Appointment of supervisor

346 Role of supervisor

347 Assignee may require supervisor or past supervisor to provide documents

348 Termination of appointment for failure to supervise adequately

349 Period of instalments

350 Variation or discharge of order

351 Effect of order

352 Proceedings against debtor

353 Supervisor must give notice of summary instalment order to creditors

354 Public register of debtors subject to current summary instalment order

355 Meaning of current summary instalment order

356 Creditor's claim

357 Payment of debtor's earnings to supervisor

358 Distribution of money paid by debtor

359 Default by debtor

360 Offence of obtaining credit

361 Introduction to this subpart

362 Application for entry to no asset procedure

363 Criteria for entry to no asset procedure

364 Debtor disqualified from entry to no asset procedure in certain cases

365 Assignee must notify creditors

366 Restrictions on debtor obtaining credit after application made

367 When debtor admitted to no asset procedure

368 Public register of persons admitted to no asset procedure

369 Creditors may not enforce debts

370 Debtor's duties after entry to no asset procedure

371 Offence of obtaining credit

372 Termination

373 When Assignee may terminate

374 Assignee may apply for preservation order

375 Effect of termination

376 Creditor may apply to Assignee for termination

377 Time of discharge

377A Effect of discharge

377B Discharge does not release partners and others

378 Interpretation

379 Court may order that estate be administered under this Part

380 Application by administrator, etc

381 Application by creditor or beneficiary for order under this Part

382 Notice of application by creditor or beneficiary

383 When Registrar may hear application

384 Costs of application

385 Court may order administration by Assignee or Public Trust

386 Certificate filed by Public Trust or Māori Trustee has effect as application and order

387 Estate vests in appointee

388 Appointee must realise, administer, and distribute estate

389 Entitlement of surviving spouse to household furniture and effects

390 Appointee may make allowance to surviving spouse

391 Sections 392 to 398 apply in respect of estate administered under this Part

392 Appointee's authority, powers, and functions

393 Distribution of estate

394 Payment of surplus

395 Creditor's notice to administrator

396 Appointee may act in relation to deceased's irregular transactions

397 Appointee may cancel execution

398 Administrator's acts valid before notice

399 Appointment of Official Assignee for New Zealand and others

400 Assignee may act on behalf of another Assignee

401 Assignee's use of name, seal, etc

402 Assignee's additional rights and remedies

403 Disqualification of Assignee

404 Vacation of office by Assignee

405 Protection of Assignee

406 Assignee's remuneration

407 Rates of Assignee's remuneration

408 Assignee must apply for order of release

409 Effect of order

410 Subsequent order of release

411 Jurisdiction and powers of court

412 Court may look at real nature of transaction

413 When Registrar or District Court Judge may exercise powers and jurisdiction of court

414 Rehearings and appeals

415 Proceedings not halted pending appeal

416 Suspension of adjudication pending appeal

417 Court may extend time

418 Defects in proceedings

419 Offences in relation to debts

420 Offences in relation to property

421 Offence in relation to written statement to creditor, etc

422 Offence in relation to documents, etc

423 Offence in relation to fictitious losses or expenses

424 Offences in relation to credit, etc

425 Offences in relation to obtaining consent of creditors

426 Offence in relation to leaving New Zealand

427 Defence of absence of intent

428 Penalties for indictable offences by bankrupt

429 Failure to keep and preserve proper record of transactions

430 Failure to keep proper records with intent to conceal

431 Penalties for offences relating to records

432 When bankrupt deemed not to have kept or preserved proper record

433 Summary offences

434 Defences to summary offences of obtaining credit

435 Penalty for summary offences by bankrupt

436 Offence by bankrupt in relation to management of companies

437 Penalties for offence in relation to management of companies

438 Assignee may prosecute if reasonable grounds certified by Crown Solicitor

439 Assignee has immunity for prosecution if certificate given by Crown Solicitor

440 False or misleading statements or refusal to answer questions

441 Regulations

442 Rules

443 Repeal and revocation

444 Transitional provisions

445 Consequential amendments to other enactments

446 Subpart applies to public register maintained under section 62, 354 or 368

447 When public register must be accessible

448 Purposes of public registers

449 General information that must be held in public registers

449A Information kept indefinitely on public register after multiple insolvency events

450 Restricted information that may be held in public register maintained under section 62

451 When Assignee may omit, remove, restrict access to, or amend, information contained in public registers

452 Search of public registers

453 Search criteria

454 Search purposes

455 Information contained in public registers may be used for statistical or research purposes

456 When search breaches information privacy principle

457 Crown and Assignee not liable for act or omission