Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 139ZIHA

Bankrupt not to enter into new arrangements

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

             (2)  Subsection (1) does not apply if the bankrupt enters into the non-monetary 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 non-monetary 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 non-monetary 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 non-monetary income receipt arrangement; or

                             (ii)  non-monetary income receipt arrangements included in a specified class of non-monetary income receipt arrangements; or

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

                              (i)  a specified non-monetary income receipt arrangement; or

                             (ii)  non-monetary income receipt arrangements included in a specified class of non-monetary 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 is guilty of 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.