Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 185ED

Scope

             (1)  This section applies if:

                     (a)  the Official Receiver has accepted a debt agreement proposal for processing; and

                     (b)  the applicable deadline has not arrived.

Cancellation

             (2)  The Official Receiver may cancel the acceptance of the debt agreement proposal for processing if:

                     (a)  the Official Receiver becomes aware that one or more affected creditors were not disclosed in the debtor's statement of affairs; or

                     (b)  the Official Receiver becomes aware that:

                              (i)  the debtor's statement of affairs; or

                             (ii)  the debtor's subsection 185C(2B) statement;

                            was deficient because it omitted a material particular or because it was incorrect in a material particular; or

                     (c)  the Official Receiver becomes aware of a material change in the debtor's circumstances that:

                              (i)  was not foreshadowed in the debtor's subsection 185C(2B) statement or the debtor's statement of affairs; and

                             (ii)  in the opinion of the Official Receiver, is capable of affecting an affected creditor's decision whether or not to accept the proposal; or

                     (d)  the Official Receiver becomes aware of a matter that, if it had been known to the Official Receiver at the time of acceptance of the debt agreement proposal for processing, would have resulted in a refusal of acceptance on the grounds that subsection 185C(4) had not been complied with.

Notification of cancellation

             (3)  If the Official Receiver cancels the acceptance of a debt agreement proposal for processing, the Official Receiver must give written notice of the cancellation, and the reasons for it, to:

                     (a)  the debtor; and

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

Review

             (4)  If the Official Receiver decides to cancel the acceptance of a debt agreement proposal for processing, the debtor may apply to the Administrative Appeals Tribunal for review of the decision.