Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 188A

Requirements for a personal insolvency agreement

  (1)   A personal insolvency agreement is a deed that:

  (a)   is expressed to be entered into under this Part; and

  (b)   complies with subsection   (2).

  (2)   A personal insolvency agreement must:

  (a)   identify the debtor's property (whether or not already owned by the debtor when he or she executes the agreement) that is to be available to pay creditors' claims; and

  (b)   specify how the property is to be dealt with; and

  (c)   identify the debtor's income (whether or not already derived by the debtor when he or she executes the agreement) that is to be available to pay creditors' claims; and

  (d)   specify how the income is to be dealt with; and

  (e)   specify the extent (if any) to which the debtor is to be released from his or her provable debts; and

  (f)   specify the conditions (if any) for the agreement to come into operation; and

  (g)   specify the circumstances in which, or the events on which, the agreement terminates; and

  (h)   specify the order in which proceeds of realising the property referred to in paragraph   (a) are to be distributed among creditors; and

  (i)   specify the order in which income referred to in paragraph   (c) is to be distributed among creditors; and

  (j)   specify whether or not the antecedent transactions provisions of this Act apply to the debtor; and

  (k)   make provision for a person or persons to be trustee or trustees of the agreement; and

  (l)   provide that the debtor will execute such instruments and generally do all such acts and things in relation to his or her property and income as is required by the agreement.

  (3)   Subsection   (2) does not limit the provisions that may be included in a personal insolvency agreement.

Antecedent transactions provisions

  (4)   If a personal insolvency agreement specifies that the antecedent transactions provisions of this Act apply to the debtor, sections   120 to 125 apply, with any modifications prescribed by the regulations, in relation to the debtor as if:

  (a)   a creditor's petition had been presented against the debtor on the day on which the special resolution requiring the execution of the agreement was passed; and

  (b)   a sequestration order had been made against the debtor on that petition on the day on which the debtor executed the agreement; and

  (c)   the trustee of the agreement were the trustee in the debtor's bankruptcy.

  (5)   In the application, by virtue of subsection   (4), of the provisions referred to in that subsection:

  (a)   a reference to the property of the bankrupt is to be read as a reference to the divisible property of the debtor; and

  (b)   a reference to a provable debt is to be read as a reference to a provable debt within the meaning of this Part; and

  (c)   a reference to the end of the bankruptcy is to be read as a reference to the end of the personal insolvency agreement.

Definition

  (6)   In this section:

"income" has the meaning given by section   139L.