BANKRUPTCY ACT 1966

PART IX - DEBT AGREEMENTS  

Division 5 - Ending a debt agreement  

SECTION 185Q   TERMINATING A DEBT AGREEMENT BY ORDER OF THE COURT  

185Q(1)   Applying for an order.  

Any of the following persons may apply to the Court for an order terminating a debt agreement:


(a) the debtor (or the debtor ' s personal representative if the debtor has died);


(b) a creditor of the debtor;


(c) the Official Receiver.

185Q(2)   Simultaneous application for a sequestration order.  

A creditor may include an application for a sequestration order in an application for an order terminating a debt agreement.

185Q(3)   Effect of applying for a sequestration order.  

For the purposes of this Act, making an application for a sequestration order under subsection (2) is taken to be presenting a creditor ' s petition against the debtor, but subsection 43(1) , sections 44 and 47 , subsections 52(1) and (2) , and Part XIA do not apply in relation to the application.

185Q(4)   Prerequisites for making an order terminating a debt agreement.  

The Court may make an order terminating a debt agreement if it is satisfied:


(a) that the debtor (or the debtor ' s personal representative if the debtor has died) has failed to carry out a term of the agreement and that it is in the creditors ' interest to terminate the agreement; or


(b) that carrying out the agreement would cause injustice or undue delay to the creditors or the debtor (or the debtor ' s estate if the debtor has died); or


(ba) that one of the following applies:


(i) the administrator of the agreement has contravened subsection 185EC(6) in relation to the relevant debt agreement proposal;

(ii) the administrator of the agreement has contravened subsection 185MC(6) in relation to the agreement, whether or not the proposal to vary the agreement was accepted;

(iii) the administrator of the agreement has contravened subsection 185PC(6) in relation to the agreement, where the proposal to terminate the agreement was not accepted; or


(c) that for any other reason the agreement should be terminated and that it is in the creditors ' interest to do so.

185Q(5)   Sequestration order.  

If the Court makes an order terminating a debt agreement, the Court may also make a sequestration order if a creditor applied for the sequestration order.




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