Section 119Part 18 — Debts Provable Against the Debtor’s Estate
What debts are and what are not provable against debtor’s estate
←→ Navigate · Click subsection badges to collapse · Press ? for help
Demands in the nature of unliquidated damages arising otherwise than by reason of a contract or promise shall not be provable under a bankruptcy petition, and no person having notice of any act of bankruptcy available for adjudication against the debtor shall prove for any debt or liability contracted by the debtor subsequently to the date of that person’s so having notice, unless the Court is of opinion that the property of the debtor has been benefited or increased, or that the debtor’s debts or liabilities have been diminished, by the payment of the money or execution of the contract upon which the debt or liability sought to be proved has arisen.
Save as aforesaid, all debts and liabilities, present or future, certain or contingent, to which the debtor is subject at the date of the provisional order or to which the debtor may become subject by reason of any obligation incurred previously to the date of the order, shall be deemed to be debts provable under a bankruptcy petition under this Act.