Bankruptcy Amendment (Debt Agreement Reform) Act 2018 (118 of 2018)

Schedule 2   Debt agreements

Part 2   Proposals to vary debt agreements

Bankruptcy Act 1966

7   After subsection 185M(1DB)

Insert:

(1E) If:

(a) subsection 185C(2AB) did not apply to the debtor at the time (the proposal time ) the relevant debt agreement proposal was given to the Official Receiver; and

(b) a person did not give a certificate under paragraph 185C(4C)(b) in relation to the relevant debt agreement proposal;

the proposal under subsection (1) of this section must not seek to vary the agreement so that the amount worked out using the following formula (expressed as a percentage) exceeds the percentage in effect under an instrument under subsection 185C(4B) at the proposal time:

(1F) The proposal given to the Official Receiver must be accompanied by a certificate signed by the administrator of the agreement stating that, having regard to:

(a) the circumstances in existence at the time the administrator signs the certificate; and

(b) any other relevant matters;

the administrator has reasonable grounds to believe that the debtor is likely to be able to discharge the obligations created by the agreement (as proposed to be varied) as and when they fall due.