Bankruptcy Act 1966
250Effect of order under Part where deceased person was bankrupt
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250 Effect of order under Part where deceased person was bankrupt
(1) Where an order is made for the administration of the estate of a deceased person under this Part who was, at the time of his or her death, a bankrupt:
(a) property:
(i) that was acquired by, or devolved on, the deceased person on or after the date of the bankruptcy; and
(ii) that is divisible amongst the creditors of the deceased person, but had not been distributed amongst the creditors in the bankruptcy before the date on which the order was made;
shall (subject to any disposition of that property made by the trustee in the bankruptcy without knowledge of the presentation of the petition on which the order was made and subject also to section 126 in its application to the administration of deceased estates under this Part by virtue of section 248) vest forthwith in the trustee of the estate of the deceased person;
(b) property:
(i) that is acquired by, or devolves on, the estate of the deceased person on or after the date of the making of the order; and
(ii) that is divisible amongst the creditors of the estate under this Part;
vests in the trustee of the estate of the deceased person under this Part as soon as it is acquired by, or devolves on, the estate;
(c) the trustee in the bankruptcy:
(i) shall be deemed to be a creditor in the administration of the estate of the deceased person under this Part in respect of any unsatisfied balance of his or her expenses or remuneration in the bankruptcy, the liabilities incurred by him or her in administering the estate in the bankruptcy and the debts proved in the bankruptcy (whether or not those debts are entitled to priority, or are postponed, in the bankruptcy);
(ii) shall rank equally with the ordinary unsecured creditors of the estate of the deceased person in its administration under this Part; and
(iii) may, where he or she has lodged a proof of debt in the administration under this Part, amend that proof of debt, without the consent of the trustee of the estate of the deceased person under this Part, for the purpose of adding:
(A) his or her expenses in the bankruptcy that have, or his or her remuneration in the earlier bankruptcy that has, accrued after the proof of debt was lodged;
(B) liabilities incurred by him or her in administering the estate in the bankruptcy after the proof of debt was lodged; or
(C) debts proved in the bankruptcy after the proof of debt was lodged;
or, with the consent of the trustee of the estate of the deceased person, for any other purpose;
(d) a charge or charging order that, by virtue of subsection 118(9), is void as against the trustee in the bankruptcy continues to be void as against that trustee; and