Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 139ZIH

Bankrupt not to enter into new arrangements

  (1)   A bankrupt to whom the supervised account regime applies must not enter into a constructive income receipt arrangement.

  (2)   Subsection   (1) does not apply if the bankrupt enters into the constructive income receipt arrangement in accordance with the consent of the trustee under subsection   (5).

Bankrupt not to participate in existing arrangements

  (3)   If a bankrupt was participating in a constructive income receipt arrangement immediately before becoming a bankrupt to whom the supervised account regime applies, the bankrupt must, as soon as practicable after becoming such a bankrupt, cease to participate in the arrangement.

  (4)   Subsection   (3) does not apply if the bankrupt continues to participate in the constructive income receipt arrangement in accordance with the consent of the trustee under subsection   (5).

Consent

  (5)   The trustee may, by written notice given to the bankrupt:

  (a)   consent to the bankrupt entering into:

  (i)   a specified constructive income receipt arrangement; or

  (ii)   constructive income receipt arrangements included in a specified class of constructive income receipt arrangements; or

  (b)   consent to the bankrupt continuing to participate in:

  (i)   a specified constructive income receipt arrangement; or

  (ii)   constructive income receipt arrangements included in a specified class of constructive income receipt arrangements.

  (6)   The trustee may, by written notice given to the bankrupt, vary or revoke a consent.

  (7)   The powers conferred on the trustee by subsections   (5) and (6) may be exercised:

  (a)   on his or her own initiative; or

  (b)   on the application of the bankrupt.

  (8)   If, following the bankrupt's application, the trustee refuses to exercise a power conferred by subsection   (5) or (6), the trustee must give the bankrupt written notice of the refusal.

Offence

  (9)   A person commits an offence if:

  (a)   the person is subject to a requirement under subsection   (1) or (3); and

  (b)   the person engages in conduct; and

  (c)   the person's conduct breaches the requirement.

Penalty for contravention of this subsection:   Imprisonment for 12 months.