Administration in bankruptcy of estate of person dying insolvent

(1) Any creditor of a deceased debtor whose debt would have been sufficient to support a bankruptcy petition against such debtor had he been alive may present 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 representative of the deceased debtor, the court may, in the prescribed manner, 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. (3) A petition for administration under this section shall not be presented to the court after proceedings have been commenced for the administration of the deceased debtor’s estate, but the court may in such case, if it is satisfied that the estate is insufficient to pay its debts, make an order in the prescribed manner, for the administration of the estate of the deceased debtor, and the like consequences shall ensue as under an administration order made on the petition of a (4) Upon an order being made for the administration of a deceased debtor’s estate, the property of the debtor shall vest in the Official Receiver as trustee thereof, and he shall forthwith proceed to realise and distribute it in accordance with (5) With the modifications hereinafter mentioned, all the provisions of Part III (relating to the administration of the property of a bankrupt) shall, so far as they are applicable, apply to the case of an administration order under this section in like manner as to an order of adjudication under this Act. (6) In the administration of the property of the deceased debtor under an order of administration, the Official Receiver shall have regard to any claim by the legal personal representative of the deceased debtor to payment of the proper funeral and testamentary expenses incurred by him in and about the debtor’s estate, and such claims shall be deemed a preferential debt under the order and be payable in full, out of the debtor’s estate, in priority to all other debts. (7) Where, on the administration of a deceased debtor’s estate, any surplus remains in the hands of the Official Receiver, after payment in full of all the debts due from the debtor, together with the costs of the administration and interest as provided by this Act in case of bankruptcy, such surplus shall be paid over to the legal personal representative of the deceased debtor’s estate, or dealt with in such other manner as may be prescribed. (8) Notice to the legal personal representative of a deceased debtor of the presentation by a creditor of a petition under this section shall, in the event of an order for administration being made thereon, be deemed to be equivalent to notice of an act of bankruptcy, and after such notice no payment or transfer of property made by the legal personal representative shall operate as a discharge to him as between himself and the Official Receiver, but except as aforesaid nothing in this section shall invalidate any payment made or any act or thing done in good faith by the legal personal representative before the date of the order for administration, 76 (9) In cases of administration in bankruptcy, in pursuance of this section, of estates of persons dying insolvent, the creditors shall have the same powers as to appointment of trustees and committees of inspection as they have in other cases where the estate of a debtor is being administered or dealt with in bankruptcy and the provisions of this Act relating to trustees and committees of inspection shall apply to trustees and committees of inspection appointed under the power conferred by this section. (10) Rules for carrying into effect the provisions of this section may be made in the same manner and to the like effect and extent as in bankruptcy.