Commonwealth Consolidated Acts

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BANKRUPTCY ACT 1966 - SECT 185F

Effect of accepting a debt agreement proposal for processing

             (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 of the Commonwealth, 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.



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