Section 185P — Bankruptcy Act 1966: Terminating a debt agreement by accepting a proposal

Proposing to terminate a debt agreement (1) The debtor (or the debtor’s personal representative if the debtor has died) or a creditor who is bound by a debt agreement may give the Official Receiver a written proposal to terminate the agreement. (1A) The proposal must be in the approved form. (1B) A proposal must be accompanied by an explanatory statement in the approved form containing such information as the form requires. (1C) The subsection (1B) statement may be set out in the same document as the proposal. Processing a proposal to terminate debt agreement (2) The Official Receiver must process the proposal in accordance with section 185PA if the Official Receiver is satisfied that subsections (1A) and (1B) of this section have been complied with. Termination of the debt agreement when the proposal is accepted (3) The debt agreement is terminated when the proposal is accepted. Note: Section 185PC explains how a proposal is accepted.