125Proceedings and order on creditor’s petition

125 Proceedings and order on creditor’s petition

(1) Section 52 of the Principal Act is amended: (a) by inserting in subsection (1) “, subject to subsection (1A),” after “may” (last occurring); and (b) by inserting after subsection (1) the following subsection: (1A) The Court shall not make a sequestration order under subsection (1) against the estate of a debtor or against the estates of 2 or more joint debtors, whether partners or not, unless: (a) a registered trustee has, under subsection 156A(1), consented to act as the trustee of the estate of the debtor, or as the trustee of the joint and separate estates of the joint debtors, as the case may be; or (b) if paragraph (a) does not apply: (i) it appears to the Court that the value of the property of the debtor, or of the property comprising the joint estate of the joint debtors, as the case may be, that would be divisible amongst the creditors by virtue of section 116 if the order were to be made (but not including any property acquired by or devolving on the debtor, or on the joint debtors jointly, as the case may be, after the making of the order that would be so divisible) is less than $10,000, or, if another amount is for the time being prescribed for the purpose of this subparagraph, that other amount; or (ii) the petitioning creditor satisfies the Court that he has, in all the circumstances of the case, taken all reasonable steps to obtain from registered trustees a consent under subsection 156A(1) in respect of the estate of the debtor, or in respect of the joint and separate estates of the joint debtors who would become bankrupts upon the making of the order, as the case may be, but has been unable to obtain any such consent. (2) Notwithstanding the amendments of section 52 of the Principal Act made by subsection (1) of this section, the provisions of that section of the Principal Act continue to apply, after the commencement of this section, in relation to a petition presented under that section of the Principal Act before the commencement of this section as if those amendments had not been made.