BANKRUPTCY ACT 1966

PART IX - DEBT AGREEMENTS  

Division 2 - Debt agreement proposals  

SECTION 185F   EFFECT OF ACCEPTING A DEBT AGREEMENT PROPOSAL FOR PROCESSING  

185F(1)   [Events that must occur]  

After acceptance of a debt agreement proposal for processing is recorded in the National Personal Insolvency Index:


(a) a creditor cannot apply for enforcement of, or enforce, a remedy against the debtor ' s person or property in respect of a frozen debt; and


(b) a sheriff must not take action, or further action, to execute, or sell property under, any process issued by a court to enforce payment of a frozen debt owed by the debtor; and


(c) a person who is entitled under a law of the Commonwealth, or of a State or Territory of the Commonwealth, to retain or deduct money from money that is or will be owing or payable to the debtor must not retain or deduct money;

until any of the following events occurs:


(d) in a case where:


(i) the applicable deadline arrives; and

(ii) the proposal has not been accepted;
the arrival of the applicable deadline;


(e) in a case where:


(i) the proposal is accepted; and

(ii) the proposal is not expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and

(iii) details of the debt agreement are entered on the National Personal Insolvency Index;
the entry of those details on the National Personal Insolvency Index;


(f) in the case where:


(i) the proposal is accepted; and

(ii) the proposal is expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and

(iii) that event occurs within that period; and

(iv) details of the debt agreement are entered on the National Personal Insolvency Index;
the entry of those details on the National Personal Insolvency Index;


(g) in the case where:


(i) the proposal is accepted; and

(ii) the proposal is expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and

(iii) that event does not occur within that period;
the end of that period;


(h) in a case where the Official Receiver cancels the acceptance of the proposal for processing - the cancellation of the acceptance;


(i) in a case where the proposal lapses - the lapse of the proposal.

185F(2)   [Action not prevented]  

Subsection (1) does not prevent a creditor from:


(a) starting a legal proceeding in respect of a frozen debt; or


(b) taking a fresh step in such a proceeding (except to enforce a judgment).

185F(3)   [ Enforcement of a remedy]  

Subsection (1) does not prevent a creditor from applying for enforcement of, or enforcing, a remedy against the debtor ' s person or property in respect of a liability under a proceeds of crime law.




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