Document ID: chunk:federal_register_of_legislation:C2025C00167:schedule:2:p1
Version: federal_register_of_legislation:C2025C00167
Segment Type: schedule
Provision Reference: sch 2 (pt 1/95)
Character Range: 863652–866693

Schedule 2—Insolvency Practice Schedule (Bankruptcy)
Note: See section 4A.

Part 1—Introduction

Division 1—Introduction

1‑1  Object of this Schedule
 (1) The object of this Schedule is to ensure that any person registered as a trustee:
 (a) has an appropriate level of expertise; and
 (b) behaves ethically; and
 (c) maintains sufficient insurance to cover his or her liabilities in practising as a registered trustee.
 (2) The object of this Schedule is also:
 (a) to regulate the administration of regulated debtors' estates consistently, unless there is a clear reason to treat a matter that arises in relation to a particular kind of estate differently; and
 (b) to regulate the administration of regulated debtors' estates to give greater control to creditors.

1‑5  Simplified outline of this Schedule

      Registering trustees
      Under this Act, only the Official Trustee or a registered trustee can act as the trustee of a regulated debtor's estate.
      Part 2 of this Schedule sets out the process for registering trustees, and also deals with disciplining registered trustees.
      Consistently regulating the administration of regulated debtors' estates
      Part 3 of this Schedule sets out provisions to regulate the administration of regulated debtors' estates consistently.
      A regulated debtor is a bankrupt, a person whose property is subject to control under Division 2 of Part X, a debtor under a personal insolvency agreement or a deceased person whose estate is being administered under Part XI.
      Other provisions
      There are other matters relevant to the administration of regulated debtors' estates in this Act.
      This Schedule also gives authority for a legislative instrument, the Insolvency Practice Rules, to deal with some matters.
      Many of the terms in this Schedule are defined. The Dictionary in section 5‑5 contains a list of every term that is defined in this Schedule. Other terms are defined in section 5 of this Act.

Division 5—Definitions

Subdivision A—Introduction

5‑1  Simplified outline of this Division

      Terms used in this Schedule are defined in the Dictionary. In some cases, the definition is a signpost to another provision of the Schedule in which the meaning of the term is explained.
      Some of the key terms, the meaning of which is explained in this Division, are regulated debtor, regulated debtor's estate and trustee of a regulated debtor's estate.

Subdivision B—The Dictionary

5‑5  The Dictionary
  In this Schedule:
adequate and appropriate fidelity insurance has a meaning affected by subsection 25‑1(2).
adequate and appropriate professional indemnity insurance has a meaning affected by subsection 25‑1(2).
administration account: see section 65‑5.
annual administration return means the return required to be lodged under subsection 70‑5(2).
annual trustee return means the return required to be lodged under subsection 30‑1(1).
committee of inspection for a regulated debtor's estate means a committee appointed under sections 80‑10