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CS Professional · Insolvency and Bankruptcy - Law and Practice · Fresh Start Process

In a bankruptcy matter, the committee of creditors approved completion of administration of the bankrupt's estate under section 137 only five months after the bankruptcy commencement date. By when must the bankruptcy trustee apply for a discharge order?

The trustee must apply within seven days of the committee of creditors' approval of completion of estate administration, because the approval came before the one-year period ended. Section 138(1)(b) provides this earlier route; otherwise the application is due on expiry of one year from commencement.

  1. AWithin seven days of the committee's approvalCorrect
  2. BOn the expiry of one year only, regardless of approval
  3. CWithin fourteen days of the committee's approval
  4. DWithin thirty days of the bankruptcy commencement date

Explanation

Section 138(1)(b) requires the trustee to apply within seven days of the committee's approval where approval is obtained before one year from commencement. Option two ignores clause (b). The fourteen-day period belongs to other provisions.

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