BANKRUPTCY ACT 1966

PART IX - DEBT AGREEMENTS  

Division 3 - Making a debt agreement  

SECTION 185K   PREVENTION OF PROCEEDINGS RELATING TO DEBTS  

185K(1)   [Creditor ' s action limited]  

While a debt agreement is in force and details of it are entered on the National Personal Insolvency Index, a creditor cannot:


(a) present a creditor ' s petition against the debtor; or


(b) proceed further with a creditor ' s petition that was presented against the debtor before details of the debt agreement were entered in the Index; or


(c) enforce a remedy against the debtor ' s person or property, or start or take a fresh step in legal proceedings, in respect of a provable debt.

185K(2)   [Maintenance agreements and orders]  

Paragraph (1)(c) does not prevent a creditor from enforcing a remedy against the debtor or the debtor ' s property for a liability under one or more of the following:


(a) a maintenance agreement;


(b) a maintenance order;


(c) a proceeds of crime law.

185K(3)   [ No action to take place]  

While a debt agreement is in force and details of it are entered on the National Personal Insolvency Index:


(a) 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 provable debt owed by the debtor; and


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




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