Part 16
                          Summary instalment orders

   146 Power to make summary instalment orders

  (1)  Where---

      (a)  a debtor, or a creditor with the consent of the debtor, alleges that
the debtor is unable to pay forthwith his debts that would be provable in his
bankruptcy and that his total unsecured debts that would be provable in his
bankruptcy are not more than $12,000; or

      (b)  a creditor alleges that a debtor against whom a judgment for the
payment of a sum of money has been obtained is unable to pay forthwith his
debts that would be provable in his bankruptcy and that his total unsecured
debts that would be provable in his bankruptcy are not more than $12,000,---

the debtor or the creditor may apply to a District Court for a summary
instalment order in respect of the debtor's debts.

  (2)  The application for a summary instalment order shall be in the
prescribed form and, where the applicant is the debtor, shall---

      (a)  state whether the debtor proposes to pay his creditors in full, and
if not shall state the amount in the dollar which he proposes to pay and in
every case shall state the amount of the weekly or other instalments by which
he proposes to pay; and

      (b)  show the property of the debtor, the names and addresses of his
creditors, and the amounts of their respective debts and the nature of each,
whether any of the debts are secured and (if so) the value of the security,
whether any of the debts are guaranteed by any person, the amount of the
earnings of the debtor and the name and address of his employer, if any, and
such other matters as may be prescribed.

  (3)  The application for a summary instalment order shall be made to the
District Court nearest to the place of residence of the debtor.

  (4)  The District Court may if it thinks fit, after hearing any creditors and
debtors who seek to be heard, and on being satisfied that the total unsecured
debts of the debtor are not more than $12,000 make a summary instalment order,
and may by the order provide for the payment of the debts of the debtor by
instalments or otherwise and either in full or to such extent as that Court
considers practicable in all the circumstances of the case.

  (5)  Except as provided in subsection (7), every summary instalment order
shall appoint as supervisor a suitable person (hereafter in this Part called
the supervisor) who is willing to supervise the compliance of the debtor with
the terms of the order.

  (6)  The District Court may, if it thinks fit, require the supervisor to
provide a bond in such amount and to such person as it thinks fit to secure
compliance by the supervisor of his obligations under this Part.

  (7)  The District Court may, if it thinks fit, make a summary instalment
order without appointing a supervisor, and in any such case all the provisions
of this Part shall apply as if the debtor were the supervisor:

provided that paragraphs (b), (c), and (d) of section 147 shall apply as if the
Registrar of the District Court that made the order were the supervisor.

  (8)  The District Court may, in addition to directing payments by
instalments, make orders---

      (a)  touching the debtor's future earnings or income:

      (b)  touching the disposal of goods owned or possessed by the debtor.

  (9)  Upon the making of a summary instalment order it shall be the duty of
the supervisor to supervise the compliance by the debtor with the terms of the
order. The Court may by the order give the supervisor power to direct the
debtor's employer to pay the debtor's wages or salary or any part thereof to
the supervisor and to supervise the payment out of the wages or income of the
reasonable living expenses of the debtor and his family.

  (10)  Where under subsection (9) an employer is directed to pay the debtor's
wages or salary or any part thereof to a supervisor, the amounts payable in
accordance with the terms of the direction shall be recoverable by the
supervisor as a debt from the employer, and the receipt of the supervisor shall
be a complete discharge to the employer therefor. Any payment that is wilfully
made by an employer to any person in contravention of any such direction shall
not discharge the liability of the employer to the supervisor in respect of the
amount so paid, unless the payment is made with the consent of the supervisor
or of the District Court or to some person other than the debtor who has a
prior legal claim thereto.

  (11)  All instalments and amounts payable under a summary instalment order
shall be paid in the prescribed manner.

  (12)  No summary instalment order shall be made under which the payment of
instalments if kept up without default would extend over a period of more than
3 years from the date of the order.

  (13)  A summary instalment order shall not be invalid by reason only that the
total amount of the debts proved exceeds $12,000; but if the supervisor
ascertains that it does exceed that amount he shall refer the matter to the
District Court which may if it thinks fit set aside or rescind the order.

  (14)  The debtor or any creditor or the supervisor or the Registrar may at
any time apply to a District Court to vary or discharge any order made under
this Part, and the Court may make such order as it thinks fit.

Section 146 heading: word substituted, on 1 January 1982, by section 2 of the
Insolvency Amendment Act 1981 (1981 No 73).

Section 146(1): substituted, on 1 January 1982, by section 2(1) of the
Insolvency Amendment Act 1981 (1981 No 73).

Section 146(1)(a): expression substituted, on 19 March 1990, by section 6(1) of
the Insolvency Amendment Act 1990 (1990 No 7).

Section 146(1)(b): expression substituted, on 19 March 1990, by section 6(1) of
the Insolvency Amendment Act 1990 (1990 No 7).

Section 146(3): word substituted, on 1 April 1980, pursuant to section 18(2) of
the District Courts Amendment Act 1979 (1979 No 125).

Section 146(4): expression substituted, on 19 March 1990, by section 6(2) of
the Insolvency Amendment Act 1990 (1990 No 7).

Section 146(4): word substituted, on 1 April 1980, pursuant to section 18(2) of
the District Courts Amendment Act 1979 (1979 No 125).

Section 146(6): word substituted, on 1 April 1980, pursuant to section 18(2) of
the District Courts Amendment Act 1979 (1979 No 125).

Section 146(7): word substituted, on 1 April 1980, pursuant to section 18(2) of
the District Courts Amendment Act 1979 (1979 No 125).

Section 146(7) proviso: word substituted, on 1 April 1980, pursuant to section
18(2) of the District Courts Amendment Act 1979 (1979 No 125).

Section 146(8): word substituted, on 1 April 1980, pursuant to section 18(2) of
the District Courts Amendment Act 1979 (1979 No 125).

Section 146(10): word substituted, on 1 April 1980, pursuant to section 18(2)
of the District Courts Amendment Act 1979 (1979 No 125).

Section 146(13): expression substituted, on 19 March 1990, by section 6(3) of
the Insolvency Amendment Act 1990 (1990 No 7).

Section 146(13): word substituted, on 1 April 1980, pursuant to section 18(2)
of the District Courts Amendment Act 1979 (1979 No 125).

Section 146(14): word substituted, on 1 April 1980, pursuant to section 18(2)
of the District Courts Amendment Act 1979 (1979 No 125).