Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 139ZIHA

Bankrupt not to enter into new arrangements

  (1)   A bankrupt to whom the supervised account regime applies must not enter into a non - monetary income receipt arrangement.

  (2)   Subsection   (1) does not apply if the bankrupt enters into the non - monetary income receipt arrangement in accordance with the consent of the trustee under subsection   (5).

Bankrupt not to participate in existing arrangements

  (3)   If a bankrupt was participating in a non - monetary income receipt arrangement immediately before becoming a bankrupt to whom the supervised account regime applies, the bankrupt must, as soon as practicable after becoming such a bankrupt, cease to participate in the arrangement.

  (4)   Subsection   (3) does not apply if the bankrupt continues to participate in the non - monetary income receipt arrangement in accordance with the consent of the trustee under subsection   (5).

Consent

  (5)   The trustee may, by written notice given to the bankrupt:

  (a)   consent to the bankrupt entering into:

  (i)   a specified non - monetary income receipt arrangement; or

  (ii)   non - monetary income receipt arrangements included in a specified class of non - monetary income receipt arrangements; or

  (b)   consent to the bankrupt continuing to participate in:

  (i)   a specified non - monetary income receipt arrangement; or

  (ii)   non - monetary income receipt arrangements included in a specified class of non - monetary income receipt arrangements.

  (6)   The trustee may, by written notice given to the bankrupt, vary or revoke a consent.

  (7)   The powers conferred on the trustee by subsections   (5) and (6) may be exercised:

  (a)   on his or her own initiative; or

  (b)   on the application of the bankrupt.

  (8)   If, following the bankrupt's application, the trustee refuses to exercise a power conferred by subsection   (5) or (6), the trustee must give the bankrupt written notice of the refusal.

Offence

  (9)   A person commits an offence if:

  (a)   the person is subject to a requirement under subsection   (1) or (3); and

  (b)   the person engages in conduct; and

  (c)   the person's conduct breaches the requirement.

Penalty for contravention of this subsection:   Imprisonment for 12 months.