Federal Court (Bankruptcy) Amendment (Insolvency and Other Measures) Rules 2017

Federal Circuit Court (Bankruptcy) Amendment (Insolvency and Other Measures) Rules 2017

30 August 2017


The Federal Court (Bankruptcy) Amendment (Insolvency and Other Measures) Rules 2017 and Federal Circuit Court (Bankruptcy) Amendment (Insolvency and Other Measures) Rules 2017 will each take effect on 1 September 2017 to coincide with the commencement of the second tranche of amendments to the Bankruptcy Act 1966 made by the Insolvency Law Reform Act 2016. The first tranche of these, largely concerned with registration and discipline of insolvency practitioners, commenced on 1 March 2017. The second tranche deals with insolvency administration processes.

As part of the second tranche of the reforms, the Insolvency Practice Schedule (Bankruptcy) (supported by the Insolvency Practice Rules (Bankruptcy) 2016) will take effect as Schedule 2 to the Bankruptcy Act. In conjunction, a number of procedural provisions of the former Bankruptcy Act are replaced by equivalent provisions in the new Insolvency Practice Schedule (Bankruptcy).

Consequently, a small number of minor technical changes were required to the harmonised bankruptcy rules for proceedings under the Bankruptcy Act of the Federal Court and Federal Circuit Court. These involve removing or substituting a number of references in rules and notes to rules to repealed sections of the Bankruptcy Act with references, where appropriate, to equivalent replacement provisions in the new Insolvency Practice Schedule (Bankruptcy).

In addition, one rule is substituted. It is in substantially the same terms as the existing rule but references, rather than a repealed section of the Bankruptcy Act, the equivalent provision of the new Insolvency Practice Schedule (Bankruptcy) and clarifies that, if the Court makes the order sought under the rule, the applicant must serve a copy of the order on the Official Receiver.

For clarity, amendments were also included to provide better guidance on the powers of the respective Courts under the harmonised rules which may be exercised by Registrars.

John Mathieson
Deputy Principal Registrar
Federal Court of Australia

Adele Byrne
Deputy Principal Registrar
Federal Circuit Court of Australia