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

Schedule 2   Amendments commencing on 1 July 2007

Bankruptcy Act 1966

50   After section 185N

Insert:

185NA Release of debtor from debts

Time and effect of release

(1) When a debt agreement ends under subsection 185N(1), the debtor is released from provable debts from which the debtor would have been released if the debtor had been discharged from bankruptcy immediately after the acceptance of the relevant debt agreement proposal for processing was recorded on the National Personal Insolvency Index.

Limits on release

(2) The release ceases to operate if the debt agreement is declared void by the Court.

(3) The release does not:

(a) release anyone else from a debt that he or she owes jointly with the debtor; or

(b) release a guarantor from the guarantee that the guarantor gave for the debtor’s debt.