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

Schedule 2   Debt agreements

Part 1   Length of debt agreements

Bankruptcy Act 1966

1   After subsection 185C(2)

Insert:

(2AA) A debt agreement proposal must not provide for the debtor to make payments under the agreement, in respect of provable debts in relation to the agreement, after:

(a) 3 years beginning on the day the agreement is made; or

(b) if subsection (2AB) applies to the debtor - 5 years beginning on the day the agreement is made.

Note: Section 185H deals with when a debt agreement is made.

(2AB) This subsection applies to the debtor if at the time the debtor gives the debt agreement proposal to the Official Receiver the debtor has an interest in real property in Australia that is a dwelling and is the debtor's principal place of residence, being an interest:

(a) that is an interest under a long-term lease; or

(b) that is any other legal or equitable estate or interest, except:

(i) an interest under a lease (other than a long-term lease); or

(ii) an interest under a licence; or

(iii) a life interest; or

(iv) an interest in an easement; or

(v) an interest held on trust for another person; or

(vi) an interest of a kind determined in an instrument under subsection (2AD) for the purposes of this subparagraph.

(2AC) If, in accordance with subsections (2AA) and (2AB), a debt agreement proposal provides for the debtor to make payments under the agreement, in respect of provable debts in relation to the agreement, after 3, but not after 5, years beginning on the day the agreement is made, the property identified under paragraph (2)(a) must not include any interest covered by subsection (2AB).

(2AD) The Minister may, by legislative instrument, determine a kind of interest for the purposes of subparagraph (2AB)(b)(vi).