Document ID: chunk:federal_register_of_legislation:C2025C00167:section:118:p2
Version: federal_register_of_legislation:C2025C00167
Segment Type: section
Provision Reference: s 118 (pt 2/3)
Character Range: 318603–321043

by him or her, or on his or her behalf, of a debt due to the bankrupt; and
 (b) that property or debt would not have been property divisible amongst the creditors of the bankrupt if the bankrupt had become a bankrupt immediately before the execution was issued or the debt was attached, as the case may be;
the trustee shall pay those proceeds or other moneys to the bankrupt or to a person authorized by the bankrupt in writing for the purpose.
 (5) Subject to this section, where notice in writing of the presentation of a creditor's petition against a debtor is given to a creditor:
 (a) the creditor shall not take any action or further action, as the case may be, to attach a debt due to the debtor until the petition has been dealt with by the Court or has lapsed; and
 (b) if a debt due to the debtor has been attached by the creditor:
 (i) the creditor shall forthwith give a written notice of the presentation of the petition to the person liable to pay that debt; and
 (ii) the attachment of the debt is suspended until the petition has been dealt with by the Court or has lapsed.
 (6) Subject to this section, where notice in writing of the reference to the Court of a debtor's petition against a debtor is given to a creditor:
 (a) the creditor shall not take any action or further action, as the case may be, to attach a debt due to the debtor until the Court has dealt with the petition; and
 (b) if a debt due to the debtor has been attached by the creditor:
 (i) the creditor shall forthwith give a written notice of the presentation of the petition to the person liable to pay that debt; and
 (ii) the attachment of the debt is suspended until the Court has dealt with the petition.
 (7) Nothing in this section shall be taken to prevent a person liable to pay a debt to a debtor from paying the debt or a part of the debt to the debtor during the suspension, in accordance with subsection (5) or (6), of an attachment of that debt.
 (8) A creditor who contravenes, or fails to comply with, subsection (5) or (6) is guilty of contempt of court.
 (9) Subject to subsection (10), where:
 (a) a creditor has, within 6 months before the presentation of a petition, or after the presentation of a petition, against a debtor obtained a charge or charging order against property of the debtor; and
 (b) the debtor subsequently becomes a bankrupt on, or by virtue of the presentation of, the petition;
the charge or charging order,