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

Schedule 2   Debt agreements

Part 1   Length of debt agreements

Bankruptcy Act 1966

3A   After subsection 185M(1C)

Insert:

(1D) The proposal must not seek to vary the agreement so that the agreement would 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 was made; or

(b) if subsection (1DA) or (1DB) applies - 5 years beginning on the day the agreement was made.

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

(1DA) This subsection applies if subsection 185C(2AB) applied to the debtor at the time the relevant debt agreement proposal was given to the Official Receiver.

(1DB) This subsection applies if:

(a) the proposal given to the Official Receiver is accompanied by a certificate signed by the administrator of the agreement stating that the administrator has reasonable grounds to believe:

(i) that the debtor has suffered a substantial change in circumstances after the agreement was made that was not foreseen at the time the agreement was made; and

(ii) that the debtor is not likely to be able to discharge the obligations created by the agreement as and when they fall due because of that change; and

(b) the proposal does not increase the total of the payments that the debtor would be required to make under the agreement.