BANKRUPTCY ACT 1966

PART IX - DEBT AGREEMENTS  

Division 3A - Duties of administrators  

SECTION 185LB   ADMINISTRATOR TO NOTIFY CREDITORS OF A 3-MONTH ARREARS DEFAULT BY A DEBTOR  

185LB(1)  


If a 3-month arrears default by a debtor occurs at a particular time in relation to a debt agreement, the administrator of the debt agreement must notify, in writing, each creditor who is a party to the debt agreement of that occurrence within 10 business days of that occurrence.

185LB(2)  
The administrator of a debt agreement is not required to give a notification under subsection (1) in respect of a 3-month arrears default (the first default ) if:


(a) one or more other 3-month arrears defaults by the debtor have occurred in relation to the debt agreement; and


(b) the 3-month period to which the first default relates overlaps with the 3-month period to which any of those other 3-month arrears defaults relate; and


(c) a notification under subsection (1) has already been given in respect of any of those other 3-month arrears defaults.

185LB(3)  
For the purposes of this section, a 3-month arrears default by a debtor occurs at a particular time (the test time ) in relation to a debt agreement if:


(a) at the beginning of the 3-month period ending immediately before the test time, one or more payments (the due payments ) in respect of provable debts became due and payable by the debtor under the debt agreement; and


(b) throughout that 3-month period, the debtor was in arrears in respect of any or all of the due payments; and


(c) either:


(i) the total amount that the debtor was so in arrears exceeds $300, or 20% of the total of all of the due payments at the beginning of that 3-month period, whichever is higher; or

(ii) if the total of all of the due payments at the beginning of that 3-month period was $300 or less - no payment was made in that period to reduce any of the due payments.



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