BANKRUPTCY ACT 1966

PART X - PERSONAL INSOLVENCY AGREEMENTS  

Division 3 - General provisions  

SECTION 229   PERSONAL INSOLVENCY AGREEMENT TO BIND ALL CREDITORS  

229(1)   [When creditors bound]  

A personal insolvency agreement that:


(a) is entered into in accordance with this Part; and


(b) complies with the requirements of this Part;

is, upon being duly executed by the debtor and the trustee, binding on all the creditors of the debtor.

229(2)   [Creditor ' s actions bound]  

If a personal insolvency agreement has become binding on the creditors of the debtor, it is not competent for a creditor, so long as the agreement remains valid:


(a) to present a creditor ' s petition against the debtor, or to proceed with such a petition presented before the agreement became so binding, in respect of a provable debt; or


(b) to enforce any remedy against the person or property of the debtor in respect of a provable debt; or


(c) to commence any legal proceeding in respect of a provable debt or take any fresh step in such a proceeding.

229(3)   [Creditors rights that are unaffected]  

This section does not:


(a) affect the right of a secured creditor to realise or otherwise deal with the creditor ' s security; or


(b) prevent a creditor, after all the obligations that a personal insolvency agreement created have been discharged, from taking any proceeding or enforcing any remedy in respect of a provable debt from which the debtor is not released by the operation of the agreement.

229(4)   [Remedies not affected]  

This section does not prevent a creditor from enforcing any remedy against:


(a) a debtor who has executed a personal insolvency agreement; or


(b) any property of such a debtor that is not subject to the agreement;

in respect of any liability of the debtor under a maintenance agreement or maintenance order (whether entered into or made, as the case may be, before or after the commencement of this subsection).




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