BANKRUPTCY ACT 1966

PART X - PERSONAL INSOLVENCY AGREEMENTS  

Division 3 - General provisions  

SECTION 230   RELEASE OF PROVABLE DEBTS  

230(1)   [Effect of release provisions]  

If a personal insolvency agreement provides for a debtor to be released from a provable debt, the agreement operates to release the debtor from that provable debt unless the agreement is set aside or terminated under this Part.

230(2)   [Effect conditional]  

Subsection (1) has effect subject to subsections (3), (4) and (5).

230(3)   Exceptions.  

Subsection (1) does not operate to release the debtor from a debt that would not be released by his or her discharge from bankruptcy if he or she had become a bankrupt on the day on which he or she executed the personal insolvency agreement.

230(4)   [Creditor ' s other rights]  

Subsection (1) does not affect the right of a secured creditor, or a person claiming through or under a secured creditor, to realise or otherwise deal with the creditor ' s security:


(a) if the secured creditor has not proved under the agreement for any part of the secured debt - for the purpose of obtaining payment of the secured debt; or


(b) if the secured creditor has proved under the agreement for part of the secured debt - for the purpose of obtaining payment of the part of the secured debt for which the creditor has not proved under the agreement;

and, for the purposes of enabling the secured creditor, or a person claiming through or under a secured creditor, so to realise or deal with the creditor ' s security, but not otherwise, the secured debt, or the part of the secured debt, as the case may be, is taken not to have been released.

230(5)   [Certain associates of debtor]  

A personal insolvency agreement does not release from any liability a person who, at the date on which the debtor executed the agreement, was:


(a) a partner or a co-trustee with the debtor; or


(b) jointly bound or had made a joint contract with the debtor; or


(c) surety or in the nature of a surety for the debtor.




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