Document ID: chunk:federal_register_of_legislation:C2025C00167:section:40:p1
Version: federal_register_of_legislation:C2025C00167
Segment Type: section
Provision Reference: s 40 (pt 1/5)
Character Range: 150530–152898

40  Acts of bankruptcy
 (1) A debtor commits an act of bankruptcy in each of the following cases:
 (a) if in Australia or elsewhere he or she makes a conveyance or assignment of his or her property for the benefit of his or her creditors generally;
 (b) if in Australia or elsewhere:
 (i) he or she makes a conveyance, transfer, settlement or other disposition of his or her property or of any part of his or her property;
 (ii) he or she creates a charge on his or her property or on any part of his or her property;
 (iii) he or she makes a payment; or
 (iv) he or she incurs an obligation;
  that would, if he or she became a bankrupt, be void as against the trustee;
 (c) if, with intent to defeat or delay his or her creditors:
 (i) he or she departs or remains out of Australia;
 (ii) he or she departs from his or her dwelling‑house or usual place of business;
 (iii) he or she otherwise absents himself or herself; or
 (iv) he or she begins to keep house;
 (d) if:
 (i) execution has been issued against him or her under process of a court and any of his or her property has, in consequence, either been sold by the sheriff or held by the sheriff for 21 days; or
 (ii) execution has been issued against him or her under process of a court and has been returned unsatisfied;
 (daa) if the debtor presents a debtor's petition under this Act;
 (da) if the debtor presents to the Official Receiver a declaration under section 54A;
 (e) if, at a meeting of any of his or her creditors:
 (i) he or she consents to present a debtor's petition under this Act and does not, within 7 days from the date on which he or she so consented, present the petition; or
 (ii) he or she consents to sign an authority under section 188 and does not, within 7 days from the date on which he or she so consented, sign such an authority and inform the chair of the meeting, in writing, of the name of the person in whose favour the authority has been signed;
 (f) if, at a meeting of any of his or her creditors, he or she admits that he or she is in insolvent circumstances and, having been requested by a resolution of the creditors to bring his or her affairs under the provisions of this Act, he or she does not, within 7 days from the date of the meeting, either:
 (i) present a debtor's petition; or
 (ii) sign an authority under section 188 and inform the chair of the meeting,