Section 185F — Bankruptcy Act 1966: Effect of accepting a debt agreement proposal for processing

(1) After acceptance of a debt agreement proposal for processing is recorded in the National Personal Insolvency Index: (a) a creditor cannot apply for enforcement of, or enforce, a remedy against the debtor’s person or property in respect of a frozen debt; and (b) a sheriff must not take action, or further action, to execute, or sell property under, any process issued by a court to enforce payment of a frozen debt owed by the debtor; and (c) a person who is entitled under a law of the Commonwealth, or of a State or Territory, to retain or deduct money from money that is or will be owing or payable to the debtor must not retain or deduct money; until any of the following events occurs: (d) in a case where: (i) the applicable deadline arrives; and (ii) the proposal has not been accepted; the arrival of the applicable deadline; (e) in a case where: (i) the proposal is accepted; and (ii) the proposal is not expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and (iii) details of the debt agreement are entered on the National Personal Insolvency Index; the entry of those details on the National Personal Insolvency Index; (f) in the case where: (i) the proposal is accepted; and (ii) the proposal is expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and (iii) that event occurs within that period; and (iv) details of the debt agreement are entered on the National Personal Insolvency Index; the entry of those details on the National Personal Insolvency Index; (g) in the case where: (i) the proposal is accepted; and (ii) the proposal is expressed to be subject to the occurrence of a specified event within a specified period after the proposal is accepted; and (iii) that event does not occur within that period; the end of that period; (h) in a case where the Official Receiver cancels the acceptance of the proposal for processing—the cancellation of the acceptance; (i) in a case where the proposal lapses—the lapse of the proposal. (2) Subsection (1) does not prevent a creditor from: (a) starting a legal proceeding in respect of a frozen debt; or (b) taking a fresh step in such a proceeding (except to enforce a judgment). (3) Subsection (1) does not prevent a creditor from applying for enforcement of, or enforcing, a remedy against the debtor’s person or property in respect of a liability under a proceeds of crime law.