Repayment or recovery of debt after home equity access scheme ceases to operate
1142A Repayment or recovery of debt after home equity access scheme ceases to operate
The debt owed by a person under section 1135, at the time the home equity access scheme ceases to operate in relation to the person by operation of section 1141, 1141A, 1141B or 1142, may be repaid by the person at any time.
Section 1141 provides that a person ceases to participate in the scheme if the debt owed by the person exceeds the maximum loan available.
Note 1A: Section 1141A provides that the scheme ceases to operate in relation to a person if the Secretary is satisfied that the person ceases to be qualified to participate in the scheme and the Secretary determines that the scheme ceases to operate in relation to the person.
Note 1B: Section 1141B provides that the scheme ceases to operate in relation to a person if the person starts to receive service pension or income support supplement.
Section 1142 provides for a person to withdraw from the scheme.
If the debt owed by the person is not repaid by the person at the time the scheme ceases to operate in relation to the person, compound interest continues to accrue, and forms part of the debt, in accordance with Step 4 of the Method statement in subsection 1135(3), until the debt is repaid or recovered.
If the debt is not repaid under subsection (1) of this section, subject to section 1139 the Commonwealth is entitled to recover the debt.
Section 1139 provides that a debt cannot be recovered from a person until after the person’s death.
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