BANKRUPTCY ACT 1966

PART X - PERSONAL INSOLVENCY AGREEMENTS  

Division 3 - General provisions  

SECTION 222C   COURT MAY TERMINATE PERSONAL INSOLVENCY AGREEMENT  

222C(1)   [Court ' s power to terminate]  

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


(a) the trustee; or


(b) a creditor; or


(c) the debtor; or


(d) if the debtor has died - the person administering the estate of the debtor;

make an order terminating the agreement if the Court is satisfied:


(e) that:


(i) the debtor; or

(ii) if the debtor has died - the debtor or the person administering the estate of the debtor;

has failed to carry out or comply with a term of the agreement; or


(f) that the agreement cannot be proceeded with without injustice or undue delay to:


(i) the creditors; or

(ii) the debtor; or

(iii) if the debtor has died - the estate of the debtor; or


(g) that, for any other reason, the agreement ought to be terminated.

222C(2)   [When creditors ' interests a factor]  

The Court must not make an order terminating a personal insolvency agreement on the ground specified in paragraph (1)(e) or (g) unless it is satisfied that it would be in the interests of the creditors to do so.

222C(3)   Ancillary orders.  

If the Court makes an order terminating a personal insolvency agreement, the Court may make such other orders as the Court thinks fit.

222C(4)   [Compensation]  

An order under subsection (3) 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 (3).

222C(5)   Application for sequestration order.  

The trustee or a creditor may include in an application under subsection (1) 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 terminating the personal insolvency agreement, it may, if it thinks fit, immediately make the sequestration order sought.

222C(6)   [Effect of sequestration order]  

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.

222C(7)   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 trustee or a creditor under this section, either unconditionally or subject to conditions.




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