Section 185ED — Bankruptcy Act 1966: Cancellation of acceptance of debt agreement proposal for processing

Scope (1) This section applies if: (a) the Official Receiver has accepted a debt agreement proposal for processing; and (b) the applicable deadline has not arrived. Cancellation (2) The Official Receiver may cancel the acceptance of the debt agreement proposal for processing if: (a) the Official Receiver becomes aware that one or more affected creditors were not disclosed in the debtor’s statement of affairs; or (b) the Official Receiver becomes aware that: (i) the debtor’s statement of affairs; or (ii) the debtor’s subsection 185C(2B) statement; was deficient because it omitted a material particular or because it was incorrect in a material particular; or (c) the Official Receiver becomes aware of a material change in the debtor’s circumstances that: (i) was not foreshadowed in the debtor’s subsection 185C(2B) statement or the debtor’s statement of affairs; and (ii) in the opinion of the Official Receiver, is capable of affecting an affected creditor’s decision whether or not to accept the proposal; or (d) the Official Receiver becomes aware of a matter that, if it had been known to the Official Receiver at the time of acceptance of the debt agreement proposal for processing, would have resulted in a refusal of acceptance on the grounds that subsection 185C(4) had not been complied with. Notification of cancellation (3) If the Official Receiver cancels the acceptance of a debt agreement proposal for processing, the Official Receiver must give written notice of the cancellation, and the reasons for it, to: (a) the debtor; and (b) affected creditors who are known to the Official Receiver. Review (4) If the Official Receiver decides to cancel the acceptance of a debt agreement proposal for processing, the debtor may apply to the Administrative Review Tribunal for review of the decision.