BANKRUPTCY ACT 1966 - SECT 185K Prevention of proceedings relating to debts

BANKRUPTCY ACT 1966 - SECT 185K

  (1)   While a debt agreement is in force and details of it are entered on the National Personal Insolvency Index, a creditor cannot:

  (a)   present a creditor's petition against the debtor; or

  (b)   proceed further with a creditor's petition that was presented against the debtor before details of the debt agreement were entered in the Index; or

  (c)   enforce a remedy against the debtor's person or property, or start or take a fresh step in legal proceedings, in respect of a provable debt.

  (2)   Paragraph   (1)(c) does not prevent a creditor from enforcing a remedy against the debtor or the debtor's property for a liability under one or more of the following:

  (a)   a maintenance agreement;

  (b)   a maintenance order;

  (c)   a proceeds of crime law.

  (3)   While a debt agreement is in force and details of it are entered on the National Personal Insolvency Index:

  (a)   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 provable debt owed by the debtor; and

  (b)   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.