Section 185MD — Bankruptcy Act 1966: Withdrawal of proposal to vary a debt agreement

Scope (1) This section applies if: (a) a proposal to vary a debt agreement is given under section 185M; and (b) the applicable deadline has not arrived; and (c) the proposal has not been accepted. Withdrawal of proposal (2) If: (a) the Official Receiver becomes aware that the relevant subsection 185M(1B) statement was deficient because it omitted a material particular or because it was incorrect in a material particular; or (b) the Official Receiver becomes aware of a material change in circumstances that: (i) was not foreshadowed in the relevant subsection 185M(1B) statement; 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decision whether or not to accept the proposal; the Official Receiver may declare in writing that the proposal is withdrawn. Notification of withdrawal (3) If the Official Receiver makes a declaration under subsection (2), the Official Receiver must give written notice of the declaration, 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 make a declaration under subsection (2), the debtor or an affected creditor may apply to the Administrative Review Tribunal for review of the decision.