Effect of accepting a debt agreement proposal for processing
185F Effect of accepting a debt agreement proposal for processing
After acceptance of a debt agreement proposal for processing is recorded in the National Personal Insolvency Index:
a creditor cannot apply for enforcement of, or enforce, a remedy against the debtor’s person or property in respect of a frozen debt; and
a sheriff must not take action, or further action, to execute, or sell property under, any process issued by a court to enforce payment of a frozen debt owed by the debtor; and
a person who is entitled under a law of the Commonwealth, or of a State or Territory, to retain or deduct money from money that is or will be owing or payable to the debtor must not retain or deduct money;
until any of the following events occurs:
in a case where:
the applicable deadline arrives; and
the proposal has not been accepted;
the arrival of the applicable deadline;
in a case where:
the proposal is accepted; and
the proposal is not expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and
details of the debt agreement are entered on the National Personal Insolvency Index;
the entry of those details on the National Personal Insolvency Index;
in the case where:
the proposal is accepted; and
the proposal is expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and
that event occurs within that period; and
details of the debt agreement are entered on the National Personal Insolvency Index;
the entry of those details on the National Personal Insolvency Index;
in the case where:
the proposal is accepted; and
the proposal is expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and
that event does not occur within that period;
the end of that period;
in a case where the Official Receiver cancels the acceptance of the proposal for processing—the cancellation of the acceptance;
in a case where the proposal lapses—the lapse of the proposal.
Subsection (1) does not prevent a creditor from:
starting a legal proceeding in respect of a frozen debt; or
taking a fresh step in such a proceeding (except to enforce a judgment).
Subsection (1) does not prevent a creditor from applying for enforcement of, or enforcing, a remedy against the debtor’s person or property in respect of a liability under a proceeds of crime law.
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