Bankruptcy Act 1966

A personal insolvency agreement that:

is entered into in accordance with this Part; and

complies with the requirements of this Part;

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:

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

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

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

This section does not:

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

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.

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

a debtor who has executed a personal insolvency agreement; or

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