Section 229 — Bankruptcy Act 1966: Personal insolvency agreement to bind all creditors

(1) A personal insolvency agreement that: (a) is entered into in accordance with this Part; and (b) complies with the requirements of this Part; is, upon being duly executed by the debtor and the trustee, binding on all the creditors of the debtor. (2) If a personal insolvency agreement has become binding on the creditors of the debtor, it is not competent for a creditor, so long as the agreement remains valid: (a) to present a creditor’s petition against the debtor, or to proceed with such a petition presented before the agreement became so binding, in respect of a provable debt; or (b) to enforce any remedy against the person or property of the debtor in respect of a provable debt; or (c) to commence any legal proceeding in respect of a provable debt or take any fresh step in such a proceeding. (3) This section does not: (a) affect the right of a secured creditor to realise or otherwise deal with the creditor’s security; or (b) prevent a creditor, after all the obligations that a personal insolvency agreement created have been discharged, from taking any proceeding or enforcing any remedy in respect of a provable debt from which the debtor is not released by the operation of the agreement. (4) This section does not prevent a creditor from enforcing any remedy against: (a) a debtor who has executed a personal insolvency agreement; or (b) any property of such a debtor that is not subject to the agreement; in respect of any liability of the debtor under a maintenance agreement or maintenance order (whether entered into or made, as the case may be, before or after the commencement of this subsection).