Bankruptcy Act 1966
If a personal insolvency agreement provides for a debtor to be released from a provable debt, the agreement operates to release the debtor from that provable debt unless the agreement is set aside or terminated under this Part.230(2) [Effect conditional]
Subsection (1) has effect subject to subsections (3), (4) and (5).230(3) Exceptions.
Subsection (1) does not operate to release the debtor from a debt that would not be released by his or her discharge from bankruptcy if he or she had become a bankrupt on the day on which he or she executed the personal insolvency agreement.230(4) [Creditor ' s other rights]
(a) if the secured creditor has not proved under the agreement for any part of the secured debt - for the purpose of obtaining payment of the secured debt; or
(b) if the secured creditor has proved under the agreement for part of the secured debt - for the purpose of obtaining payment of the part of the secured debt for which the creditor has not proved under the agreement;
and, for the purposes of enabling the secured creditor, or a person claiming through or under a secured creditor, so to realise or deal with the creditor ' s security, but not otherwise, the secured debt, or the part of the secured debt, as the case may be, is taken not to have been released.230(5) [Certain associates of debtor]
(a) a partner or a co-trustee with the debtor; or
(b) jointly bound or had made a joint contract with the debtor; or
(c) surety or in the nature of a surety for the debtor.