39Insolvent estates—payment of debts

39 Insolvent estates—payment of debts (1) This section applies to the administration of a deceased person's estate if the estate— (a) is insufficient to pay its debts and liabilities in full; and (b) is not being administered under the Bankruptcy Act 1966 of the Commonwealth. (2) Subject to subsection (4) and anything to the contrary in this Act, the administration of an estate to which this section applies must be conducted in accordance with the bankruptcy rules as in force at the date of death of the deceased. (3) The bankruptcy rules apply in relation to the following— (a) the rights of secured and unsecured creditors against the deceased's estate; (b) the debts and liabilities provable against the deceased's estate; (c) the valuation of annuities and future and contingent liabilities of the deceased's estate; (d) the priorities of debts and liabilities of the deceased's estate. (4) Despite anything to the contrary in the bankruptcy rules, a demand, in relation to which proceedings are maintainable against the deceased's estate, is provable against the estate despite being a demand in the nature of unliquidated damages arising otherwise than by reason of a contract, promise or breach of trust. (5) For the purpose of applying the bankruptcy rules, a reference in the Bankruptcy Act 1996 of the Commonwealth or regulations made under that Act— (a) to the date of an order for administration under Part XI of that Act is taken to be a reference to the date of the deceased's death; and (b) to the date on which an administration under Part XI of that Act is deemed to have commenced under that Part is taken to be a reference to the date of the deceased's death; and (c) to the Court is taken to be a reference to the Supreme Court. (6) In this section— ***bankruptcy rules*** means the provisions of the Bankruptcy Act 1966 of the Commonwealth and regulations made under that Act applying in relation to the administration of estates of deceased persons in bankruptcy. S. 39A inserted by No. 80/2014 s. 11.