BANKRUPTCY ACT 1966 - SECT 185F Effect of accepting a debt agreement proposal for processing

BANKRUPTCY ACT 1966 - SECT 185F

  (1)   After acceptance of a debt agreement proposal for processing is recorded in the National Personal Insolvency Index:

  (a)   a creditor cannot apply for enforcement of, or enforce, a remedy against the debtor's person or property in respect of a frozen debt; and

  (b)   a sheriff must not take action, or further action, to execute, or sell property under, any process issued by a court to enforce payment of a frozen debt owed by the debtor; and

  (c)   a person who is entitled under a law of the Commonwealth, or of a State or Territory, to retain or deduct money from money that is or will be owing or payable to the debtor must not retain or deduct money;

until any of the following events occurs:

  (d)   in a case where:

  (i)   the applicable deadline arrives; and

  (ii)   the proposal has not been accepted;

    the arrival of the applicable deadline;

  (e)   in a case where:

  (i)   the proposal is accepted; and

  (ii)   the proposal is not expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and

  (iii)   details of the debt agreement are entered on the National Personal Insolvency Index;

    the entry of those details on the National Personal Insolvency Index;

  (f)   in the case where:

  (i)   the proposal is accepted; and

  (ii)   the proposal is expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and

  (iii)   that event occurs within that period; and

  (iv)   details of the debt agreement are entered on the National Personal Insolvency Index;

    the entry of those details on the National Personal Insolvency Index;

  (g)   in the case where:

  (i)   the proposal is accepted; and

  (ii)   the proposal is expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and

  (iii)   that event does not occur within that period;

    the end of that period;

  (h)   in a case where the Official Receiver cancels the acceptance of the proposal for processing--the cancellation of the acceptance;

  (i)   in a case where the proposal lapses--the lapse of the proposal.

  (2)   Subsection   (1) does not prevent a creditor from:

  (a)   starting a legal proceeding in respect of a frozen debt; or

  (b)   taking a fresh step in such a proceeding (except to enforce a judgment).

  (3)   Subsection   (1) does not prevent a creditor from applying for enforcement of, or enforcing, a remedy against the debtor's person or property in respect of a liability under a proceeds of crime law.