Bankruptcy Amendment Regulations 2007 (No. 2) (138 of 2007)

Schedule 2   Amendments commencing on 1 July 2007

[7]   Before regulation 9.02

insert

9.01 Prescribed information to be supplied to the debtor

(1) For paragraph 185C (2D) (b) and subsection 185E (1) of the Act, the following information is prescribed:

(a) information about alternatives to entering into a debt agreement;

(b) information about the consequences of making a debt agreement proposal;

(c) information about sources of financial advice and guidance to persons facing or contemplating entering into a debt agreement;

(d) a statement that it is an act of bankruptcy for a debtor to give to the Official Receiver a debt agreement proposal.

(2) The information must be factual and objective.

(3) The Official Receiver must not accept a debtor's debt agreement proposal under Division 2 of Part IX of the Act, unless the debtor has given to the Official Receiver a signed acknowledgment that the debtor has received and read the prescribed information.

(4) If the debtor presents a debt agreement proposal without having given the acknowledgement, the Official Receiver must:

(a) if the debtor presents the debt agreement proposal in person - give the prescribed information to the debtor; or

(b) if the debtor presents the debt agreement proposal by post - post the prescribed information to the debtor.

(5) Subject to subregulation (6), a debt agreement proposal and acknowledgement may be signed by a person for a debtor intending to present a debt agreement proposal if the debtor is unable to properly read the debt agreement proposal, prescribed information and acknowledgement ('the relevant material') because he or she is:

(a) blind, partially sighted, illiterate or partially literate; or

(b) insufficiently familiar with the English language.

(6) A person who signs a debt agreement proposal and acknowledgement for a debtor, must sign a statement:

(a) where paragraph (5) (a) applies - that he or she has carefully read the relevant material to the debtor; or

(b) where paragraph (5) (b) applies - that he or she has carefully interpreted the relevant material to the debtor in a language with which both are familiar.