Bankruptcy Legislation Amendment (Debt Agreements) Act 2007 (44 of 2007)

Schedule 2   Amendments commencing on 1 July 2007

Bankruptcy Act 1966

20   After subsection 185C(2)

Add:

(2A) A debt agreement proposal must not provide for the transfer of property (other than money) to a creditor.

(2B) A debt agreement proposal given to the Official Receiver must be accompanied by an explanatory statement in the approved form containing such information as the form requires.

(2C) The debtor’s subsection (2B) statement may be set out in the same document as the debtor’s debt agreement proposal.

(2D) If the person specified under paragraph (2)(c) is not the debtor, the debt agreement proposal given to the Official Receiver must be accompanied by a certificate signed by the person to the effect that:

(a) the person consents to being specified under that paragraph; and

(b) the person has given the debtor the information prescribed by the regulations; and

(c) 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 person has reasonable grounds to believe that the debtor is likely to be able to discharge the obligations created by the agreement as and when they fall due; and

(d) the person has reasonable grounds to believe that all information required to be set out in the debtor’s statement of affairs has been set out in that statement; and

(e) the person has reasonable grounds to believe that all information required to be set out in the debtor’s subsection (2B) statement has been set out in that statement.

(2E) A debt agreement proposal must not be given jointly by 2 or more debtors.

(2F) If a debt agreement proposal is expressed to be subject to the occurrence of a specified event within a specified period after the debt agreement proposal is accepted, the specified period must not be longer than 7 days.