Commonwealth Numbered Acts

BANKRUPTCY AMENDMENT ACT 1987 No. 119 of 1987 - SECT 19

19. After Division 2 of Part IV the following Division is inserted:

"Division 2A-Declaration of Intention to present Debtor's Petition
Presentation of declaration

"54A. Subject to section 54B, a debtor may present to the Registrar a
declaration, in accordance with the prescribed form, of the debtor's intention
to present a debtor's petition. When debtor disqualified from presenting
declaration

"54B. A debtor is not entitled to present a declaration under section 54A:

   (a)  when the debtor is not entitled, except with the leave of the Court,
        to present a petition under section 55;

   (b)  after a creditor's petition presented against the debtor is served on
        the debtor and before:

        (i)    a sequestration order is made on the petition;

        (ii)   the petition is withdrawn or dismissed; or

        (iii)  the petition lapses under subsection 52 (4);

   (c)  after a debtor's petition is presented against the debtor and before
        the petition is accepted or rejected;

   (d)  while the debtor's property is subject to control under Division 2 of
        Part X;

   (e)  within 6 months after the debtor signs an authority under section 188;
        or (f) within 12 months after a declaration presented by the debtor
        under section 54A is accepted under section 54C. Acceptance or
        rejection of declaration

"54C. Subject to section 54D, where a debtor presents a declaration under
section 54A, the Registrar shall:

   (a)  if it appears to the Registrar that the debtor is entitled to present
        a declaration under section 54A and that the declaration presented is
        in accordance with the prescribed form:

        (i)    accept the declaration and endorse it accordingly; and

        (ii)   forthwith sign and seal a copy of the declaration; or

   (b)  in any other case-reject the declaration. Registrar to supply
        information to debtor

"54D. (1) The Registrar shall not accept a declaration presented by a debtor
under section 54A unless the Registrar is satisfied that the debtor's
attention has been directed to:

   (a)  the procedures under this Act for dealing with the debtor's financial
        affairs; and

   (b)  the availability, and sources, of advice and guidance about how the
        debtor can deal with his or her financial difficulties.

"(2) A contravention of subsection (1) does not affect the validity of the
Registrar's acceptance under section 54C of a declaration presented under
section 54A. Enforcement suspended during stay period

"54E. (1) Where, during the stay period in relation to a declaration of
intention presented by a debtor, a sealed copy of the declaration is produced
to a creditor to whom the debtor owes a frozen debt, subsection (2) has effect
throughout the remainder of that period.

"(2) It is not competent for the creditor:

   (a)  to apply for the issue of enforcement process in respect of the debt;
        or

   (b)  to enforce a remedy against the debtor's person or property in respect
        of the debt.

"(3) Nothing in this section prevents a creditor from commencing a legal
proceeding in respect of a debt, or from taking a fresh step in such a
proceeding otherwise than in connection with enforcing a judgment. Duties of
sheriff

"54F. (1) Where, during the stay period in relation to a declaration of
intention presented by a debtor, a sealed copy of the declaration is produced
to a sheriff, subsections (2) and (3) have effect throughout the remainder of
that period.

"(2) The sheriff shall refrain from taking action, or further action, to
execute, or to sell property under, enforcement process issued in respect of a
frozen debt owed by the debtor.

"(3) The sheriff shall refrain from paying to a person proceeds of enforcement
process issued in respect of a frozen debt owed by the debtor.

"(4) A contravention of this section does not affect a person's title to
property that was purchased in good faith under a sale under enforcement
process issued in respect of a debt.

"(5) Where:

   (a)  under this section, a sheriff refrains from taking action, or further
        action, to sell real property under enforcement process issued in
        respect of a debt;

   (b)  the debtor becomes a bankrupt; and

   (c)  the property vests in the trustee of the bankrupt's estate; the costs
        of executing the enforcement process are a first charge on the
        property. Duty of court registrar

"54G. Where, during the stay period in relation to a declaration of intention
presented by a debtor, a sealed copy of the declaration is produced to the
registrar or other appropriate officer of a court, the registrar or other
officer shall, throughout the remainder of that period, refrain from paying to
a person proceeds of enforcement process issued in respect of a frozen debt
owed by the debtor. Duties of person entitled to deduct money owing to
declared debtor

"54H. (1) Where, during the stay period in relation to a declaration of
intention presented by a debtor, a sealed copy of the declaration is produced
to a person who is entitled under a law of the Commonwealth, of a State, or of
a Territory of the Commonwealth:

   (a)  to retain or deduct money from money payable or owing, or to become
        payable or owing, to the debtor; and

   (b)  to apply the retained or deducted money toward discharging a frozen
        debt owed by the debtor to any person; subsections (2) and (3) apply.

"(2) The person shall, throughout the remainder of that period:

   (a)  refrain from so retaining or deducting money; and

   (b)  refrain from paying to a person (other than the debtor), or otherwise
        applying, money that was so retained or deducted before the sealed
        copy was produced to the person.

"(3) Nothing in this section affects a person's liability to pay money to the
debtor.

"(4) Nothing in this section affects the operation of section 218 of the
Income Tax Assessment Act 1936. Extension of time where this Division prevents
the doing of an act

"54J. Where, throughout a particular period, this Division prevents the doing
of a particular act, that period shall be disregarded in determining, for the
purposes of any law, agreement or instrument, whether or not that act has been
done within a particular period or before a particular time. Section 33 not to
apply to this Division

"54K. Nothing in section 33 permits the extension or abridgment of a period or
time limited by this Division. Secured creditor's rights under security not
affected

"54L. Nothing in this Division affects the right of a secured creditor to
realise or otherwise deal with the creditor's security.".