BANKRUPTCY ACT 1966

PART X - PERSONAL INSOLVENCY AGREEMENTS  

Division 3 - General provisions  

SECTION 222   COURT MAY SET ASIDE PERSONAL INSOLVENCY AGREEMENT  

222(1)   Setting aside on grounds of unreasonableness etc.  

If a personal insolvency agreement is in force, the Court may, on application by:


(a) the Inspector-General; or


(b) the trustee; or


(c) a creditor;

make an order setting the agreement aside if the Court is satisfied that:


(d) the terms of the agreement are unreasonable or are not calculated to benefit the creditors generally; or


(e) for any other reason, the agreement ought to be set aside.

222(2)   Setting aside on grounds of non-compliance with this Part etc.  

If a personal insolvency agreement is in force, the Court may, on application by:


(a) the Inspector-General; or


(b) the trustee; or


(c) a creditor; or


(d) the debtor;

make an order setting the agreement aside if the Court is satisfied that:


(e) the agreement was not entered into in accordance with this Part; or


(f) the agreement does not comply with the requirements of this Part.

222(3)  
The Court must not make an order setting aside a personal insolvency agreement on the ground that it does not comply with the requirements of this Part if the agreement complies substantially with those requirements.

222(4)  
The Court must not make an order under subsection (2) unless the application for the order is made before all the obligations that the personal insolvency agreement created have been discharged.

222(5)   Setting aside on grounds of false or misleading information etc.  

If a personal insolvency agreement is in force, the Court may, on application by:


(a) the Inspector-General; or


(b) the trustee; or


(c) a creditor;

make an order setting the agreement aside if the Court is satisfied that:


(d) the debtor has given false or misleading information in answer to a question put to the debtor with respect to any of the debtor ' s conduct or examinable affairs at the meeting of creditors at which the resolution requiring the debtor to execute the agreement was passed; or


(e) the debtor has:


(i) omitted a material particular from the statement of the debtor ' s affairs given under subsection 188(2C) or (2D) ; or

(ii) included an incorrect and material particular in that statement; or


(f) the debtor was subject to a requirement under Division 75 of Schedule 2 (including rules made under that Division) to table a statement, and the debtor has:


(i) omitted a material particular from that statement; or

(ii) included an incorrect and material particular in that statement; or


(g) the controlling trustee has:


(i) omitted a material particular from the declaration given by the controlling trustee under subsection 189A(3) ; or

(ii) included an incorrect and material particular in that declaration; or


(h) the controlling trustee was subject to a requirement under Division 75 of Schedule 2 (including rules made under that Division) to table a statement, and the controlling trustee has:


(i) omitted a material particular from that statement; or

(ii) included an incorrect and material particular in that statement; or


(i) a person who became the trustee of the agreement has:


(i) omitted a material particular from the declaration given by the person under subsection 215A(3) or (4) ; or

(ii) included an incorrect and material particular in that declaration.

222(6)  
The Court must not make an order under subsection (5) unless it is satisfied that it would be in the interests of the creditors to do so.

222(7)  
The Court must not make an order under subsection (5) unless the application for the order is made before all the obligations that the personal insolvency agreement created have been discharged.

222(8)   Ancillary orders.  

If the Court makes an order under subsection (1), (2) or (5), the Court may make such other orders as the Court thinks fit.

222(9)  
An order under subsection (8) 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 (8).

222(10)   Application for sequestration order.  

The trustee or a creditor may include in an application under subsection (1), (2) or (5) an application for a sequestration order against the estate of the debtor. If the Court, on the first-mentioned application, makes an order under this section setting the personal insolvency agreement aside, it may, if it thinks fit, immediately make the sequestration order sought.

222(11)  
The making of an application by the trustee or a creditor for a sequestration order under this section is taken, for the purposes of this Act, to be equivalent to the presentation of a creditor ' s petition against the debtor, but the provisions of subsection 43(1) , sections 44 and 47 , subsections 52(1) and (2) and Part XIA do not apply in relation to such an application.

222(12)   Court may dispense with service on debtor of notice of application.  

The Court may, if it thinks fit, dispense with service on the debtor of notice of an application by the Inspector-General, the trustee or a creditor under this section, either unconditionally or subject to conditions.




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.