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COMMONWEALTHAct
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s 185U

Making an order declaring a debt agreement void

In force
Part IXDebt agreements
Division 6Voiding a debt agreement

185U Making an order declaring a debt agreement void

Power to make order

(1)

On an application under section 185T, the Court may make an order declaring a debt agreement void.

Limit on declaring debt agreement void on grounds of non‑compliance with this Part

(2)

The Court must not declare all or part of a debt agreement void on the ground that it does not comply with this Part if the agreement or part of the agreement complies substantially with this Part.

Declaring a debt agreement void on grounds of deficient statement of affairs

(3)

The Court must not declare all or part of a debt agreement void on the ground that the statement of affairs lodged with the debt agreement was deficient, unless the Court is satisfied that it is in the creditors’ interests to declare the agreement or part of the agreement void.

Sequestration order

(4)

If the Court makes an order declaring all of a debt agreement void, the Court may also make a sequestration order if a creditor applied for the sequestration order.

Ancillary orders

(5)

If the Court makes an order declaring all or part of a debt agreement void, the Court may make such other orders as the Court thinks fit.

(6)

An order under subsection (5) may be an order directing a person to pay another person compensation of such amount as is specified in the order. This subsection does not limit subsection (5).

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