Bankruptcy Act 1966

PART IX - DEBT AGREEMENTS  

Division 4 - Varying a debt agreement  

SECTION 185MC   ACCEPTANCE OF A PROPOSAL TO VARY A DEBT AGREEMENT  

185MC(1)   Acceptance in writing.  

A proposal to vary a debt agreement is accepted if:

(a) the Official Receiver writes to affected creditors of a debtor under section 185MA ; and

(b) a majority in value of the creditors who reply before the applicable deadline state that the proposal should be accepted.

185MC(1A)    

For the purposes of paragraph (1)(b), disregard an affected creditor who:

(a) is the administrator of the debt agreement; or

(b) was, on becoming an affected creditor, a related entity of the administrator.

185MC(2)   Timing of acceptance.  

A proposal that is accepted under subsection (1) is taken to be accepted at the applicable deadline.

185MC(3)   Value of a creditor.  

In assessing, for the purposes of paragraph (1)(b), the value of a creditor who is a related entity of the debtor, any debt that was assigned to the creditor is taken to have a value equal to the value of the consideration that the creditor gave for the assignment.

185MC(4)    
For the purposes of paragraph (1)(b), the value of a creditor is to be assessed as at the time when the acceptance of the relevant debt agreement proposal for processing was recorded on the National Personal Insolvency Index.

185MC(5)    
For the purposes of paragraph (1)(b), a secured creditor is taken to be a creditor only to the extent (if any) by which the amount of the debt owing to the creditor exceeds the value of the creditor ' s security.

Offence

185MC(6)    

A person commits an offence if:

(a) the person is the administrator of a debt agreement; and

(b) the person gives, or agrees or offers to give, to an affected creditor any valuable consideration; and

(c) the person does so with the intention of securing the affected creditor ' s acceptance or non-acceptance of the proposal to vary the agreement.

Penalty for contravention of this subsection: Imprisonment for 6 months.