I dont know if I have read this right but is it saying that the previous BR debt gets added to the new BR but only gets paid after the 2nd BR is fully paid?
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When a bankruptcy order is made and the bankrupt has not been discharged from prior bankruptcy proceedings, the trustee in the earlier bankruptcy is entitled to prove in the later bankruptcy for (Section 335(5)):
- the unsatisfied balance of the provable debts in the earlier bankruptcy,
- interest payable on that balance, and
- any unpaid expenses in the earlier bankruptcy.
Where the bankrupt has been discharged from the earlier proceedings the trustee is not entitled to make such a claim.
NB Any claim by the trustee in the earlier bankruptcy would rank for payment only after all other proved debts have been paid in full with interest in the later bankruptcy (Section 335(6)).
Where the official receiver becomes aware that a bankrupt is undischarged from previous bankruptcy dealings, they should inform the trustee (in the earlier proceedings) of the making of the bankruptcy order to ensure that any undistributed assets relating to any after-acquired property and/or monies paid under an IPA, are transferred to the later proceedings (Section 334, Rule 10.151). The official receiver should also ensure that the claim of the trustee in the earlier bankruptcy is noted in ISCIS.
55.7 Assets from a previous bankruptcy
In circumstances where a bankruptcy order is made against an undischarged bankrupt any assets (including income) acquired by them after the date of the earlier bankruptcy and not yet distributed by the trustee are to be transferred to the later bankruptcy (Section 334(3), Section 335(1)). Any such money or property will then form part of the estate in the later bankruptcy but subject to a first charge in favour of the earlier trustee for any expenses they may have incurred in dealing with those assets (Section 335(3)).
Where, on receiving notice of a bankruptcy petition, a trustee has any after-acquired property they should hold and protect the property until the petition is disposed of. Any disposal after receipt of notice is void unless the consent or ratification of the court dealing with the earlier bankruptcy is obtained (Section 334 (2)).
just my opinion.
