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

Schedule 2   Amendments commencing on 1 July 2007

Bankruptcy Act 1966

21   After subsection 185C(3)

Insert:

Remuneration of administrator

(3A) If a debt agreement proposal provides for the remuneration of the person specified under paragraph (2)(c), the debt agreement proposal must:

(a) provide that the total remuneration of the person specified under paragraph (2)(c) is an amount equal to a specified percentage (the overall remuneration percentage ) of the total amount payable by the debtor under the agreement in respect of provable debts; and

(b) provide that, if the debtor pays an amount (the individual debt repayment amount ) under the agreement in respect of those provable debts:

(i) the debtor must also pay to the person specified under paragraph (2)(c) an amount (the individual remuneration amount ) ascertained in accordance with the agreement; and

(ii) the individual remuneration amount must not exceed the overall remuneration percentage of the individual debt repayment amount; and

(iii) the person specified under paragraph (2)(c) must apply the individual remuneration amount towards the discharge of the person’s entitlement to remuneration under the agreement.