BANKRUPTCY ACT 1966

PART IX - DEBT AGREEMENTS  

Division 5 - Ending a debt agreement  

SECTION 185N   END OF DEBT AGREEMENT ON DISCHARGE OF OBLIGATIONS UNDER AGREEMENT  

185N(1)   Time of end of debt agreement.  

A debt agreement ends when all the obligations that it created have been discharged, unless the agreement has been terminated earlier under section 185P , 185Q , 185QA or 185R .

185N(2)   Keeping surplus property that was subject to an agreement.  

When a debt agreement ends under subsection (1), the debtor is entitled to any property that was subject to the debt agreement but that was not required by the agreement to be distributed to creditors.

Example: Rhea entered into a debt agreement that required her to sell her boat and car and to pay her creditors $15,000 from the proceeds. The debt agreement ended when she sold her boat and car for $16,000 and paid her creditors $15,000. She may keep the remaining $1,000 received from the sale.

185N(3)   Certificate of the end of a debt agreement.  

If a debt agreement ends under subsection (1), the Official Receiver must give the debtor a certificate to that effect.

185N(4)   Evidentiary value of certificate.  

The certificate is prima facie evidence of the facts stated in it.

185N(5)   Notification of end of debt agreement.  

If a debt agreement ends under subsection (1), the person who was the administrator of the agreement immediately before it ended must, within 5 business days after the end of the agreement, notify the Official Receiver, in writing, of the end of the agreement.

185N(6)   [ Notification in approved form]  

A notification under subsection (5) must be in the approved form.




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