ORDER OF PAYMENTS
The bankrupt’s estate must be distributed in the following order.
1. Cost and charges:
Costs and charges properly incurred in administering the estate must be paid in priority to all debts and in the proper sequence.
2. Pre preferential debts:
These are:
- Proper funeral and testamentary expenses of a deceased insolvent;
- Premiums paid by apprentices or articled clerks;
- Property of a friendly society of which the bankrupt is an officer; and
- Expenses properly incurred by a trustee of a deed of arrangement.
3. Preferential debts:
These include:
- Local rates and amounts deducted as P.A.Y.E by a bankrupt employer from employees' pay accruing due during the twelve months preceding the receiving order;
- Up to one year's arrears of any other assessed taxes;
4. Unsecured debts:
These rank equally after payment of preferential debts in full.
5. Deferred debts:
These include:
- Accrued interest in excess of 6% per annum, due to an unsecured creditor;(paid in priority to other deferred creditors).
- Statutory interest at 6% per annum; and
- Claims arising under a settlement set aside by the trustee.
6. Surplus
Any surplus remaining after payment of all debts and other liabilities in full must be returned to the bankrupt.