Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 185PC

Acceptance in writing

             (1)  A proposal to terminate a debt agreement is accepted if:

                     (a)  the Official Receiver writes to affected creditors of a debtor under section 185PA; and

                     (b)  a majority in value of the creditors who reply before the applicable deadline state that the proposal should be accepted.

Timing of acceptance

             (2)  A proposal that is accepted under subsection (1) is taken to be accepted at the applicable deadline.

Value of a creditor

             (3)  In assessing, for the purposes of paragraph (1)(b), the value of a creditor who is a related entity of the debtor, any debt that was assigned to the creditor is taken to have a value equal to the value of the consideration that the creditor gave for the assignment.

             (4)  For the purposes of paragraph (1)(b), the value of a creditor is to be assessed as at the time when the acceptance of the relevant debt agreement proposal for processing was recorded on the National Personal Insolvency Index.

             (5)  For the purposes of paragraph (1)(b), a secured creditor is taken to be a creditor only to the extent (if any) by which the amount of the debt owing to the creditor exceeds the value of the creditor's security.