Bankruptcy Amendment (Debt Agreement Reform) Act 2018 (118 of 2018)

Schedule 1   Debt agreement proposals

Part 4   Payment to income ratio

Bankruptcy Act 1966

21   After subsection 185C(4A)

Insert:

(4B) The Minister may, by legislative instrument, determine the following:

(a) a percentage for the purposes of paragraph (4)(e) (which may exceed 100%);

(b) an amount for the purposes of the definition of low income debtor amount in subsection (5).

(4C) This subsection applies to the debtor if:

(a) the amount worked out using the formula under paragraph (4)(e) (expressed as a percentage) exceeds the percentage determined in an instrument under subsection (4B); and

(b) the proposed administrator gives to the debtor a certificate signed by the proposed administrator stating that, having regard to:

(i) the circumstances in existence at the time when the debtor's statement of affairs was signed by the debtor; and

(ii) any other relevant matters;

the proposed administrator is satisfied that the debtor is likely to be able to discharge the obligations created by the agreement as and when they fall due.

(4D) A person commits an offence of strict liability if:

(a) the person gives a certificate under paragraph (4C)(b); and

(b) before giving the certificate, the person did not:

(i) make reasonable inquiries about the debtor's financial situation; or

(ii) take reasonable steps to verify the debtor's financial situation.

Note: See also section 277B (about infringement notices).

Penalty: 60 penalty units.