Document ID: chunk:federal_register_of_legislation:C2025C00167:section:115
Version: federal_register_of_legislation:C2025C00167
Segment Type: section
Provision Reference: s 115
Character Range: 300931–303224

115  Commencement of bankruptcy
 (1) If a person becomes a bankrupt on a creditor's petition and subsection (1A) does not apply, then the bankruptcy is taken to have relation back to, and to have commenced at, the time of the commission of the earliest act of bankruptcy committed by the person within the period of 6 months immediately before the date on which the creditor's petition was presented.
 (1A) If:
 (a) a person becomes a bankrupt on a creditor's petition that was based on breach of a bankruptcy notice; and
 (b) the time for compliance with the notice was extended under subsection 41(7); and
 (c) the Court making the sequestration order considers that the application under subsection 41(7) was frivolous, vexatious or otherwise without substantial merit;
then the bankruptcy is taken to have relation back to, and to have commenced at, the time that would have applied under subsection (1) of this section if the time for compliance had not been extended.
 (1B) If a person becomes a bankrupt because of a sequestration order made under Division 6 of Part IV or under Part X, then the bankruptcy is taken to have relation back to, and to have commenced at, the time of the commission of the earliest act of bankruptcy committed by the person within the period of 6 months immediately before the date on which the application for the sequestration order was made.
 (2) The bankruptcy of a person who becomes a bankrupt as a result of the acceptance of a debtor's petition is taken to have relation back to, and to have commenced at, the time indicated in the following table.

Debtor's petition bankruptcy—time to which bankruptcy has relation back and time bankruptcy commences
                                                                                                                                                                                                                                                                                                                                                         Time to which bankruptcy has relation back and time of commencement of bankruptcy
                                                                                                       Circumstances in which debtor's petition was presented or accepted