Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 229

  (1)   A personal insolvency agreement that:

  (a)   is entered into in accordance with this Part; and

  (b)   complies with the requirements of this Part;

is, upon being duly executed by the debtor and the trustee, binding on all the creditors of the debtor.

  (2)   If a personal insolvency agreement has become binding on the creditors of the debtor, it is not competent for a creditor, so long as the agreement remains valid:

  (a)   to present a creditor's petition against the debtor, or to proceed with such a petition presented before the agreement became so binding, in respect of a provable debt; or

  (b)   to enforce any remedy against the person or property of the debtor in respect of a provable debt; or

  (c)   to commence any legal proceeding in respect of a provable debt or take any fresh step in such a proceeding.

  (3)   This section does not:

  (a)   affect the right of a secured creditor to realise or otherwise deal with the creditor's security; or

  (b)   prevent a creditor, after all the obligations that a personal insolvency agreement created have been discharged, from taking any proceeding or enforcing any remedy in respect of a provable debt from which the debtor is not released by the operation of the agreement.

  (4)   This section does not prevent a creditor from enforcing any remedy against:

  (a)   a debtor who has executed a personal insolvency agreement; or

  (b)   any property of such a debtor that is not subject to the agreement;

in respect of any liability of the debtor under a maintenance agreement or maintenance order (whether entered into or made, as the case may be, before or after the commencement of this subsection).