Bankruptcy Act 1966
View history note
Hide history noteAny of the following persons may apply to the Court for an order terminating a debt agreement:
(a) the debtor (or the debtor ' s personal representative if the debtor has died);
(b) a creditor of the debtor;
(c) the Official Receiver.
A creditor may include an application for a sequestration order in an application for an order terminating a debt agreement.
185Q(3) Effect of applying for a sequestration order.For the purposes of this Act, making an application for a sequestration order under subsection (2) is taken to be presenting a creditor ' s petition against the debtor, but subsection 43(1) , sections 44 and 47 , subsections 52(1) and (2) , and Part XIA do not apply in relation to the application.
185Q(4) Prerequisites for making an order terminating a debt agreement.The Court may make an order terminating a debt agreement if it is satisfied:
(a) that the debtor (or the debtor ' s personal representative if the debtor has died) has failed to carry out a term of the agreement and that it is in the creditors ' interest to terminate the agreement; or
(b) that carrying out the agreement would cause injustice or undue delay to the creditors or the debtor (or the debtor ' s estate if the debtor has died); or
(ba) that one of the following applies:
(i) the administrator of the agreement has contravened subsection 185EC(6) in relation to the relevant debt agreement proposal;
(ii) the administrator of the agreement has contravened subsection 185MC(6) in relation to the agreement, whether or not the proposal to vary the agreement was accepted;
(iii) the administrator of the agreement has contravened subsection 185PC(6) in relation to the agreement, where the proposal to terminate the agreement was not accepted; or
(c) that for any other reason the agreement should be terminated and that it is in the creditors ' interest to do so.
If the Court makes an order terminating a debt agreement, the Court may also make a sequestration order if a creditor applied for the sequestration order.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
