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.