Section 139ZIHA — Bankruptcy Act 1966: Non-monetary income receipt arrangements

Bankrupt not to enter into new arrangements (1) A bankrupt to whom the supervised account regime applies must not enter into a non-monetary income receipt arrangement. (2) Subsection (1) does not apply if the bankrupt enters into the non-monetary income receipt arrangement in accordance with the consent of the trustee under subsection (5). Bankrupt not to participate in existing arrangements (3) If a bankrupt was participating in a non-monetary income receipt arrangement immediately before becoming a bankrupt to whom the supervised account regime applies, the bankrupt must, as soon as practicable after becoming such a bankrupt, cease to participate in the arrangement. (4) Subsection (3) does not apply if the bankrupt continues to participate in the non-monetary income receipt arrangement in accordance with the consent of the trustee under subsection (5). Consent (5) The trustee may, by written notice given to the bankrupt: (a) consent to the bankrupt entering into: (i) a specified non-monetary income receipt arrangement; or (ii) non-monetary income receipt arrangements included in a specified class of non-monetary income receipt arrangements; or (b) consent to the bankrupt continuing to participate in: (i) a specified non-monetary income receipt arrangement; or (ii) non-monetary income receipt arrangements included in a specified class of non-monetary income receipt arrangements. (6) The trustee may, by written notice given to the bankrupt, vary or revoke a consent. (7) The powers conferred on the trustee by subsections (5) and (6) may be exercised: (a) on his or her own initiative; or (b) on the application of the bankrupt. (8) If, following the bankrupt’s application, the trustee refuses to exercise a power conferred by subsection (5) or (6), the trustee must give the bankrupt written notice of the refusal. Offence (9) A person commits an offence if: (a) the person is subject to a requirement under subsection (1) or (3); and (b) the person engages in conduct; and (c) the person’s conduct breaches the requirement. Penalty for contravention of this subsection: Imprisonment for 12 months.