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Death of Insolvent Debtor

deceased, bankruptcy and estate

DEATH OF INSOLVENT DEBTOR. The Bankruptcy Act, 1883, provides as follows " Section 125. (1) Any creditor of a ceased debtor whose debt would have been sufficient to support a bankruptcy petition against such debtor, had he been alive, may sent to the Court a petition in the prescribed form praying for an order for the administration of the estate of the deceased debtor, according to the Law of Bankruptcy.

" (2) Upon the prescribed notice being given to the legal personal repre sentative of the deceased debtor, the Court may, in the prescribed man ner, upon proof of the petitioner's debt, unless the Court is satisfied that there is a reasonable probability that the estate will be sufficient for the payment of the debts owing by the deceased, make an order for the administration in bankruptcy of the deceased debtor's estate, or may upon cause shown dismiss such petition with or without costs." The Court referred to in this Section is the Court within the jurisdiction of which the debtor resided or carried on business for the greater part of six months prior to his decease.

Upon an order being made for the admin istration of a deceased debtor's estate, the debtor's property shall vest in the official receiver of the Court as trustee, unless the creditors appoint a trustee in bankruptcy, and he shall forthwith proceed to realise and distribute it (Section 125, s.s. 5).

Any claim by the legal representative of the deceased to payment of proper funeral and testamentary expenses incurred by him about the estate, is deemed a preferential debt, and is payable in full out of the debtor's estate in priority to all other debts (Section 125, s.s. 7).

The provisions of the Bankruptcy Acts relating to the administration of the pro perty of a bankrupt. are generally applicable to the case of an administration of a deceased debtor's estate (Section 125, s.s. 6). (See BANKRUPTCY.)