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

Schedule 2   Debt agreements

Part 2   Proposals to vary debt agreements

Bankruptcy Act 1966

9   After subsection 185M(2)

Insert:

(2A) However, the Official Receiver is not required by subsection (2) to process the proposal if:

(a) the Official Receiver reasonably believes that complying with the agreement (as proposed to be varied) would cause undue hardship to the debtor; or

(b) the Official Receiver thinks that the creditors' interests would be better served by not processing the proposal.

(2B) If the Official Receiver decides not to process the proposal because of subsection (2A), the Official Receiver must give written notice of the decision, and the reasons for it, to:

(a) the debtor; and

(b) affected creditors who are known to the Official Receiver.

(2C) If the Official Receiver decides not to process the proposal because of subsection (2A), the debtor or an affected creditor may apply to the Administrative Appeals Tribunal for review of the decision.