Bankruptcy Legislation Amendment Act 2004 (80 of 2004)

Schedule 1   Amendments relating to statements of affairs and Part X agreements

Part 1   Amendment of the Bankruptcy Act 1966

Division 2   Amendments relating to Part X agreements

147   Sections 224 and 224A

Repeal the sections, substitute:

224 Validity of acts if personal insolvency agreement set aside or terminated

Scope

(1) This section applies if a personal insolvency agreement is:

(a) set aside by the Court; or

(b) terminated.

Validity of acts

(2) All payments made, acts and things done and transactions entered into in good faith under, or for the purposes of, the agreement by:

(a) the trustee; or

(b) any other person;

before he or she had notice of the order of the Court or of the termination of the agreement, as the case may be, are valid and effectual and are not liable to be set aside by the trustee of a later personal insolvency agreement or in a subsequent bankruptcy.

224A Notice that a personal insolvency agreement has been set aside, varied or terminated

(1) If a personal insolvency agreement is terminated or varied by a resolution or special resolution at a meeting of creditors called for the purpose, the trustee of the agreement must immediately file a copy of the resolution or special resolution in the office of the Official Receiver.

(2) If a personal insolvency agreement is varied in accordance with subsection 221A(5), the trustee of the agreement must immediately file a copy of the variation in the office of the Official Receiver.

(3) If a personal insolvency agreement is terminated by the occurrence of any circumstance or event on the occurrence of which the deed provides that it is to terminate, the trustee of the agreement must immediately give written notice of that fact to the Official Receiver.

(4) If:

(a) the Court makes an order setting aside or terminating a personal insolvency agreement; and

(b) a registered trustee was the trustee of the personal insolvency agreement;

the registered trustee must give written notice of the order to the Official Receiver.

(5) If:

(a) the Court makes an order setting aside or terminating a personal insolvency agreement; or

(b) a personal insolvency agreement is terminated otherwise than because of an order of the Court;

the trustee of the personal insolvency agreement must give written notice of the order or termination to each of the creditors within 2 working days of the making of the order or of the termination, as the case may be.

(6) For the purposes of subsection (5), a working day is a day that is not a Saturday, Sunday or public holiday in:

(a) in the case of an order made by the Court - the place where the order is made; or

(b) in the case of a termination otherwise than because of an order of the Court:

(i) if the trustee of the personal insolvency agreement has only one office - the place where that office is located; or

(ii) if the trustee of the personal insolvency agreement has 2 or more offices - the place where the principal office is located.