BANKRUPTCY ACT 1966

PART IX - DEBT AGREEMENTS  

Division 6 - Voiding a debt agreement  

SECTION 185T   APPLYING FOR AN ORDER DECLARING A DEBT AGREEMENT VOID  

185T(1)   Persons who may apply for an order.  

The debtor (or the debtor ' s personal representative if the debtor has died), a creditor or the Official Receiver may apply to the Court for an order declaring that all, or a specified part, of a debt agreement is void.

185T(2)   Grounds for applying for an order.  

A person mentioned in subsection (1) may apply for an order on one or more of the following grounds:


(a) there is doubt on a specific ground that all or part of the debt agreement was not made in accordance with this Part or does not comply with this Part;


(b) the statement of affairs lodged with the debt agreement was deficient because it omitted a material particular or because it was incorrect in a material particular;


(c) an administrator of the debt agreement has committed a breach of duty in relation to the agreement;


(d) if the administrator of the debt agreement is a registered debt agreement administrator - the administrator has breached a condition determined in an instrument under subsection 186F(4) or 186G(2B) ;


(e) if the administrator of the debt agreement is a registered trustee - the administrator has breached a condition imposed under section 20-35 of Schedule 2 , to the extent that the condition relates to the administration of debt agreements.

185T(3)   Time limit on applying for an order.  

A person cannot apply for an order declaring a debt agreement void after all the obligations created by the agreement have been discharged.

185T(4)   Simultaneous application for a sequestration order.  

A creditor may include an application for a sequestration order in an application for an order declaring all or part of a debt agreement void.

185T(5)   Effect of applying for a sequestration order.  

For the purposes of this Act, making an application for a sequestration order under subsection (4) 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.




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