BANKRUPTCY ACT 1966

PART IX - DEBT AGREEMENTS  

Division 6 - Voiding a debt agreement  

SECTION 185U   MAKING AN ORDER DECLARING A DEBT AGREEMENT VOID  

185U(1)   Power to make order.  

On an application under section 185T , the Court may make an order declaring a debt agreement void.

185U(2)   Limit on declaring debt agreement void on grounds of non-compliance with this Part.  

The Court must not declare all or part of a debt agreement void on the ground that it does not comply with this Part if the agreement or part of the agreement complies substantially with this Part.

185U(3)   Declaring a debt agreement void on grounds of deficient statement of affairs.  

The Court must not declare all or part of a debt agreement void on the ground that the statement of affairs lodged with the debt agreement was deficient, unless the Court is satisfied that it is in the creditors ' interests to declare the agreement or part of the agreement void.

185U(4)   Sequestration order.  

If the Court makes an order declaring all of a debt agreement void, the Court may also make a sequestration order if a creditor applied for the sequestration order.

185U(5)   Ancillary orders.  

If the Court makes an order declaring all or part of a debt agreement void, the Court may make such other orders as the Court thinks fit.

185U(6)   [ Compensation may be ordered]  

An order under subsection (5) may be an order directing a person to pay another person compensation of such amount as is specified in the order. This subsection does not limit subsection (5).




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