On 19/05/2013,
you requested for the version in force on 19/05/2013
incorporating all amendments published on or before 19/05/2013.
The closest version currently available is that of 01/03/2012.
65.
—(1) The court hearing a creditor’s bankruptcy application shall not make a bankruptcy order thereon unless it is satisfied that —
(a)
the debt or any one of the debts in respect of which the application is made is a debt which, having been payable at the date of the application, has neither been paid nor secured or compounded for; and
(b)
where the debtor does not appear at the hearing, the application has been duly served on him.
[42/2005]
(2) The court may dismiss the application if —
(a)
it is not satisfied with the proof of the applicant creditor’s debt or debts;
(b)
it is not satisfied with the proof of the service of the application on the debtor;
(c)
it is satisfied that the debtor is able to pay all his debts;
(d)
it is satisfied that the debtor has made an offer to secure or compound for the applicant creditor’s debt the acceptance of which offer would have required the dismissal of the application and the offer has been unreasonably refused by the applicant creditor; or
(e)
it is satisfied that for other sufficient cause no order ought to be made thereon.
[42/2005]
(3) In determining for the purposes of subsection (2)(c) whether the debtor is able to pay all his debts, the court shall take into account his contingent and prospective liabilities.
(4) When a bankruptcy application has been made against a debtor on the ground that the debtor —
(a)
has failed to pay a judgment debt, and there is pending an appeal from or an application to set aside, the judgment or order by virtue of which the judgment debt is payable; or
(b)
has failed to comply with a statutory demand, and there is pending an application to set aside the statutory demand,
the court may, if it thinks fit, stay or dismiss the application.
[42/2005]
(5) Where the debtor appears at the hearing of the application and denies that he is —
(a)
indebted to the applicant; or
(b)
indebted to such an amount as would justify the applicant making a bankruptcy application against him,
the court may, on condition that the debtor furnishes such security as the court may order for payment to the applicant of —
(i)
any debt which may be established against the debtor in due course of law; and
(ii)
the costs of establishing the debt,
stay all proceedings on the application for such time as may be required for trial of the question relating to the debt.
[42/2005]
(6) Where proceedings are stayed, the court may, if by reason of the delay caused by the stay of proceedings or for any other cause it thinks just, make a bankruptcy order on the application of some other creditor, and shall thereupon dismiss, on such terms as it may think just, the application in which proceedings have been stayed.
[42/2005]
(7) If a bankruptcy order may be made on the bankruptcy application, the court shall, instead of making the order, adjourn the bankruptcy application for a period of 6 months or such other period as the court may direct and refer the matter to the Official Assignee for the purpose of enabling the Official Assignee to determine whether the debtor is suitable for a debt repayment scheme under Part VA, if the following qualifying criteria are satisfied:
(a)
the debt or the aggregate of the debts in respect of which the bankruptcy application is made does not exceed $100,000 or such other amount as the Minister may, by order published in the Gazette, specify;
(b)
the debtor is not an undischarged bankrupt, and has not been a bankrupt at any time within the period of 5 years immediately preceding the date on which the bankruptcy application is made, under this Act;
(c)
a voluntary arrangement under Part V in respect of the debtor is not in effect, and was not in effect at any time within the period of 5 years immediately preceding the date on which the bankruptcy application is made;
(d)
the debtor is not subject to any debt repayment scheme under Part VA, and has not been subject to any such debt repayment scheme at any time within the period of 5 years immediately preceding the date on which the bankruptcy application is made; and
(e)
the debtor is not a sole proprietor, a partner of a firm within the meaning of the Partnership Act (Cap. 391) or a partner in a limited liability partnership.
[6/2009]
(8) The court shall proceed to hear a bankruptcy application adjourned under subsection (7) if —
(a)
the Official Assignee reports to the court under section 56B(2) that the debtor is not suitable for a debt repayment scheme under Part VA; or
(b)
at the expiry of the period of adjournment, a debt repayment scheme has not commenced under Part VA in respect of the debtor.
[6/2009]
(9) If at any time during the period of adjournment of a bankruptcy application under subsection (7) a debt repayment scheme commences under Part VA in respect of the debtor, the bankruptcy application shall be deemed to be withdrawn on the date of commencement of the debt repayment scheme.
[6/2009]
(10) The court may give such orders or directions as it thinks fit for the adjournment, hearing or disposal of a bankruptcy application referred to in subsection (7).
[6/2009]
(11) For the purpose of subsection (7)(d), a person in respect of whom the Official Assignee issues —
(a)
a certificate of inapplicability of a debt repayment scheme under section 56L; or
(b)
a certificate of completion of a debt repayment scheme under section 56N(1) —
(i)
which states that all the debts (including interest on each of such debts at the rate to which a creditor is entitled under any written law or rule of law) of the person which have been proved under, and all the costs and expenses of, the debt repayment scheme have been paid in full; and
(ii)
which has not been revoked under section 56O(1),
shall not be treated as having been subject to that debt repayment scheme.
[6/2009]
(13) Subsections (7) to (12) shall only apply to bankruptcy applications made on or after 18th May 2009.
[6/2009]