Bankruptcy Amendment Regulations 2007 (No. 2)

(138 of 2007)

7 June 2007

Bankruptcy Act 1966

1   Name of Regulations

These Regulations are the Bankruptcy Amendment Regulations 2007 (No. 2).

2   Commencement

These Regulations commence as follows:

(a) on the day after they are registered - regulations 1 to 4 and Schedule 1;

(b) on 1 July 2007 - Schedule 2.

3   Amendment of Bankruptcy Regulations 1996

Schedules 1 and 2 amend the Bankruptcy Regulations 1996.

4   Transitional

Despite the repeal by these Regulations of regulations 9.01 to 9.07 and Schedule 5 of the Bankruptcy Regulations 1996, those regulations and Schedule continue to have effect in relation to a debt agreement made as a result of the acceptance of a debt agreement proposal given to the Official Receiver before 1 July 2007.

Schedule 1   Amendments commencing on day after registration

[1]   After regulation 9.07

insert

9.08 Qualifications of applicants

For paragraph 186C (2) (e) of the Act, the following qualifications are prescribed after 30 June 2009:

(a) a Certificate IV in Financial Services (Accounting) from an Australian college of advanced education;

(b) a degree, diploma or similar qualification from an Australian university or college of advanced education, or other Australian tertiary institution, of an equivalent or higher level to the qualification mentioned in paragraph (a).

[2]   Schedule 8, items 21 and 22

substitute

[3]   Schedule 8, after item 23

insert

Schedule 2   Amendments commencing on 1 July 2007

[1]   Subregulation 4.11 (1)

omit

, 57 (3A) and 185E (1)

substitute

and 57 (3A)

[2]   Paragraph 4.11 (1) (e)

substitute

(e) a statement that it is an act of bankruptcy for a debtor to present to the Official Receiver, under section 54A of the Act, a declaration of intention to present a debtor's petition.

[3]   Subregulation 4.11 (3)

substitute

(3) The Official Receiver must not accept a debtor's petition under section 55, 56B or 57 of the Act unless the debtor has given to the Official Receiver a signed acknowledgement (which may be included in or appended to the petition) that the debtor has received and read the prescribed information.

[4]   Part 6, Division 3

omit

[5]   Regulations 9.01 to 9.07

omit

[6]   Regulation 9.08

renumber as regulation 9.02

[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.

[8]   Regulation 15A.01, after definition of penalty

insert

trustee includes a debt agreement administrator.

[9]   Schedule 5

omit

[10]   Schedule 8, item 23D

substitute