s.66Proceedings in bankruptcy against estate of a deceased debtor
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Section 66Part 12 — Bankruptcy Proceedings Against Estate of a Deceased Debtor

Proceedings in bankruptcy against estate of a deceased debtor

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Any creditor of a deceased debtor whose debt would have been sufficient to support a bankruptcy petition against such debtor, had that debtor been alive may present to the Court a petition praying for an order for the administration of the estate of the deceased debtor according to the law of bankruptcy.
Upon notice being given to the legal personal representative of the deceased debtor, the Court may, upon proof of the petitioner’s debt, unless the Court is satisfied that there is a reasonable probability that the estate will be sufficient for the payment of the debts owing by the deceased, make an order for the administration in bankruptcy of the deceased debtor’s estate, or may upon cause shown dismiss such petition with or without costs.
An order of administration under this section may be made at any time after the grant of probate or letters of administration.
A petition for administration under this section shall not be presented to the Court after proceedings have been commenced for the administration of the deceased debtor’s estate; but the Court in which such proceedings have been taken may, in any such case in which it is made to appear that the estate is insufficient to pay its debts, make an order for the administration of the estate of the deceased debtor in bankruptcy, and thereupon the like consequences shall ensue as under an administration order made on the petition of a creditor.
Upon an order being made under this section for the administration of a deceased debtor’s estate, the property of the debtor shall vest in the Trustee, and the Trustee shall forthwith proceed to realise and distribute the same in accordance with the laws of bankruptcy.
In the administration by the Trustee of the assets of any person pursuant to an order under this section, the Court shall, on the petition of the Trustee have and exercise all the powers which, in the case of administration of the assets by the Court, it would have, under section 108, on the petition of a creditor or creditors.
With the modifications hereinafter mentioned, all the provisions of this Act relating to the administration of the property of a bankrupt shall, so far as the same are applicable, apply to the case of an administration order under this section in like manner as to an order of adjudication under this Act.
In the administration of the property of the deceased debtor under an order made under this section, the Trustee shall have regard to any claim by the legal personal representative of the deceased debtor to payment of the proper funeral and testamentary expenses incurred by the legal personal representative in and about the debtor’s estate, and such claims shall be deemed a preferential debt under the order and be payable in full, out of the debtor’s estate, in priority to all other debts.
If, on the administration of a deceased debtor’s estate, any surplus remains in the hands of the Trustee, after payment in full of all the debts due from the debtor together with the costs of the administration and interest as provided by this Act in case of bankruptcy, such surplus shall be paid over to the legal personal representative of the deceased debtor’s estate, or dealt with in such other manner as may be ordered by the Court.
Notice to the legal personal representative of a deceased debtor of the presentment by a creditor of a petition under this section shall, in the extent of an order for administration being made thereon, be deemed to be equivalent to notice of an act of bankruptcy, and after such notice no payment or transfer of property made by the legal personal representative shall operate as a discharge to the legal personal representative as between themself and the Trustee; save as aforesaid, nothing in this section shall invalidate any payment made or any act or thing done in good faith by the legal personal representative before the date of the order for administration.
In this section — “Court”, means any Court in which the deceased debtor might immediately, before the deceased debtor’s death, have been adjudicated bankrupt.

Defined Terms

Court

Cross References

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